Transfer to Teachers Pension

ref2468

Long term lurker on these forums but finally something come up that I cant find the answer too...

When it comes to money, finance and budgeting I have quite an extensive knowledge, but unfortunately pensions is a real weak-point.

I'm in my mid-twenties and hence after going though University I haven't been earning for that many years but have always been paying into a company pension scheme (RS Plan). With this my latest statement informed me I have £3000 in the scheme which is estimated to be worth £550 per year upon retirement age.

I stopped paying into this scheme in August 2013 when I left my job to undertake a PGCE. Now as a qualified teacher I pay into the TPS (approx £140 per month). I realise I only have a year to transfer any existing pensions across and am unsure whether this is a good option? How can I compare the two plans? I'm aware of changes coming into affect in April - is it worth getting this sorted before then or will it make no difference?

Thanks in advance for any advice.

xylophone

http://www.investorschronicle.co.uk/2014/11/13/your-money/pensions-and-sipps/retirement-income/should-you-ditch-final-salary-for-new-pension-freedoms-IanwfBgtos27ZGydyap42L/article.html

You might prefer not to transfer in in order to keep flexibility in the future.

hyubh

ref2468 wrote: »

I'm aware of changes coming into affect in April - is it worth getting this sorted before then or will it make no difference?

Presumably the difference would be a final salary service credit if you elected to proceed before April vs. additional CARE pension afterwards; the additional benefits bought would also be attached to different normal retirement ages (65 vs. your state pension age).

ref2468

Thank you for your replies. Interesting article which gave me food for thought as I didn't realise the new pension reforms don't include public sector workers. Arguable which is better but I'm aware its currently a small amount so think it might just be worth leaving it where it is in the RS plan.


Thanks for the advice

xylophone

new pension reforms don't include public sector workers.

Not exactly - members of unfunded PS schemes will not be permitted to transfer out (except in certain limited circumstances) - members of funded schemes LGPS, for example, will.