Should I stop paying into teacher pension to save a deposit?

System

Kidmudsy
What an strange response. However probably fits in with the thinking of your Daily Mail paper God.
P.

mark55man

Just popped in to say - look at DFW (Debt Free Wannabee) MFW (Mortgage Free Wannabee) and OS (Old Style) threads. Also the grow your income thread

You will find yourself able to make up a lot of the saving you need.

Getting the money from your pension is a soft (and poorly advised) way out.

If you really really want to buy a house - which is absolutely (IMHO) a good thing to do independent of the crazy House Price Crash and House Price Boom propagandists - then you (and your little cost-centres (children :-) ) are going to have to really work at it.

This will be of lasting benefit - I wish someone had shouted this in my year 20 years ago. The majority of commenters above are regulars on this board and know lots about financial and retirement planning and the correct mindsets you need.

Highlights for me
* Listen to jamesd's suggestions about accelerating the deposit by 0%ing spending (but you must be disciplined)
* Look at the Old Style board and half you grocery budget
* Look at advice given to DFWannabee's as they submit their SOA (Statement of Affairs) and find savings even in the most tight of scenarios


Do more for free and do more for less and you will be there in no time.

chucknorris

kidmugsy wrote: »

That is a very powerful argument for scrapping the TPS; if you are right it clearly doesn't do its job of attracting and retaining staff. If it turned out to mean you had to pay teachers more, so be it.

If the TPS was scrapped I would leave asap, it is the only thing keeping me from retiring, to be fair though I have recently decided to retire next year anyway, once I have bought the max allowed additional pension within the TPS.

atush

excelpaul wrote: »

Kidmudsy
What an strange response. However probably fits in with the thinking of your Daily Mail paper God.
P.

I dont think it was strange, and I have never ever read the daily mail.

zagubov

OP- by all that's holy, don't opt out of the scheme!

It'd be like selling your healthy kidneys so you could afford to buy a kidney machine.

Bootsox

To the OP, would a low, single digit (say 5 to 6%), fall in house prices not wipe out your deposit anyway (in which case, your sacrifice of a valuable pension scheme will have been in vain)?

Buying a house with a mortgage is no different to renting off the bank.

lulu650

Hi OP, ex teacher here recommending you don't opt out. Can you increase your earnings? What's your career path for the future? Could you consider private tuition/exam work?

PeacefulWaters

Bootsox wrote: »

To the OP, would a low, single digit (say 5 to 6%), fall in house prices not wipe out your deposit anyway (in which case, your sacrifice of a valuable pension scheme will have been in vain)?

Buying a house with a mortgage is no different to renting off the bank.

Without the deposit there's not going to be a mortgage and no home ownership.

That's the reason the OP is investigating scrapping the pension.

atush

We get that. but dont believe giving up the pension is the way to go.

PeacefulWaters

atush wrote: »

We get that. but dont believe giving up the pension is the way to go.

Yup, I think I've already mentioned that!