Teacher's pension for short term employment?

master811

Hi,

My wife is a teacher, although has been on short term contracts until recently. Since last September, she is now full time and paying over £200/mth into her pension.

However, we are possibly looking at moving to Canada in a few years (as she is Canadian), and we're not sure whether it is worth keeping this current pension contribution?

Would she ever get anything out of it, if it's only for a few years or would she be better off just opting out instead?

Potentially we may return in the future, but it could be 10 years or more, so long term is difficult to know.

Thanks for any help.

kidmugsy

She can earn the undying thanks of UK taxpayers by leaving the scheme. She can also, if she wishes, send the £200 p.m. to the Treasury, marked "to pay off the national debt". All contributions gratefully received.

atush

She should join it. No1, you aren't sure how long you will be here, and after 2 years the money stays there and grows. If she leaves and has to transfer out as she hasn't made their min time period, the transfer out gives her much more money for her retirement (wherever) than would the return of her contrbis (which would be taxed and pay Nics).

Second, how many years Nics has she got? If she doesn't have 10 by the time you leave, it might be worth her paying voluntary contribs to get to 10 years as that will be the enw min for a UK state pension?

hyubh

master811 wrote: »

Would she ever get anything out of it

Along with what the others have said, if you were to retire in Canada there would be no problem in her drawing the pension there (TPS will even pay into an overseas bank account), and there would be no potential loss of inflation proofing like with the UK state pension.

xylophone

In her position I would join the scheme - why turn down the employer contribution?

And how many people intend to go travelling/ move area/ go on to further study etc and never actually do it?