MSE News: Schools to teach teenagers about pension planning

ExMugPunter

Credit-Crunched wrote: »

Teachers talking about pensions! Incredible.

They do not think that a career average final salary pension is a decent one!

Maybe when they look at the returns on a DC pension, they make take a step back and realise, that the DB ain't too bad after all!

Please don't tar ALL of us with the same brush.

Many of us, yes, but not all!

ExMugPunter

Personally, I think teaching personal finance is a good idea. However, I don't think it can go into the detail of pension planning or such like.

I think that highlighting the difference between a consumerist lifestyle (or 'looking' rich) compared to actually being wealthy would be a good start.

Show them how they could actually be relatively wealthy rather than merely looking 'rich'.

Highlight the fact that many of the people they look up and perceive as being 'rich' (sports and pop stars) are actually bankrupt or on the verge of it.

I think the biggest change we could make to a kids life is to get them to realise that they don't need all this 'stuff' and having it is not a sign of wealth. In fact chasing it, is actually detrimental to their wealth.

I would love to teach something like that, but as a Primary school teacher my scope will be somewhat limited.

However, that said I have often thought of showing my Year 4's (8 and 9 Years old's) a series of pictures designed to get them thinking about wealth and to challenge their obsession with 'stuff'.
I would show them a photo of a 'blinged up' person walking into a bank alongside an older, more conservatively dressed person and ask who they think is the 'richest' or most wealthy?
I think their opinions would be quite interesting, especially if then went further and looked at theoretical bank balances and lifestyles etc.

Hopefully they would then realise that true wealth isn't shown in flash cars, clothes and phones etc. but more of a lifestyle of sensible choices.

If it only got a few of them think a bit deeper about money, it would be worth it.

chucknorris

ExMugPunter wrote: »

Please don't tar ALL of us with the same brush.

Many of us, yes, but not all!

Absolutely! I'm in the TPS and I know that the pension is fantastic, in fact now that I have bought the max allowed additional pension (which is also a great deal), I am going to retire next year. If I could buy more additional pension right now, I would work longer. I could actually buy more, but as a transitional member I would have to wait another 4 years before being eligible to start buying additional pension in the new scheme.

ViolaLass

Problem is, you can't (or least, don't) strike to say "We're among those teachers who don't have too much of a problem with these changes."

Dunnit

ExMugPunter wrote: »

...
I would show them a photo of a 'blinged up' person walking into a bank alongside an older, more conservatively dressed person and ask who they think is the 'richest' or most wealthy?
...
If it only got a few of them think a bit deeper about money, it would be worth it.

Strongly agree with what you say as I vainly try to teach that to my children.

I would want you to teach them the comparator rather than the superlative.

Credit-Crunched

chucknorris wrote: »

Absolutely! I'm in the TPS and I know that the pension is fantastic, in fact now that I have bought the max allowed additional pension (which is also a great deal), I am going to retire next year. If I could buy more additional pension right now, I would work longer. I could actually buy more, but as a transitional member I would have to wait another 4 years before being eligible to start buying additional pension in the new scheme.

Sadly you are in the minority.

"During a strike in October more than 3,000 schools were shut or partially closed in London, Cumbria, the South East, North East and South West"

Most of the teachers I know, still feel that the pension is less than generous, and that it should be a final salary pension.

My point was that if teachers actually did the maths, they would be amazed at how much they would have to contribute to a DC scheme to get the same level of renumeration from a DB scheme. It makes their 7.2% - 12.4% look like peanuts.

So in that instance it might be a worthwhile exercise, if only to open teachers eyes, as without a true understanding of the real issues that people in DC schemes face, how can they teach about it.

Andy_L

Who are they going to get who is qualified to teach it & how are they going to find time to fit it into the school day?

ViolaLass

Credit-Crunched wrote: »

Most of the teachers I know, still feel that the pension is less than generous, and that it should be a final salary pension.

Or is it that they feel it is simply less generous than it was. Why would one welcome a lessening of one's perks? I know it's still a good deal but that doesn't the old one wasn't better.

atush

Of course the old one was better, that is why it was too expensive?

Doesn't mean that MOST (obv not all teachers as we see here) teachers dont realize how good their pensions are and what even the new one would cost them to fund themselves.

So yes, having to LEARN about pensions in order to teach teenagers might be a good thing.

Credit-Crunched

Of course no one would welcome a lessening of ones perks, however, when viewed not in isolation, and relative to other professions of equal stature and responsibility, it is a pretty good deal.

It is not a race to the bottom, it is merely adding equality and not expecting others to pay for your generous pension scheme. If you would like to retire at 55 with 50% of your final salary, then is it too much to ask that you increase your contributions accordingly and don't rely upon the tax payer to foot the difference?