AVC for a young teacher on TPS

JoeCrystal

xylophone wrote: »

Give me strength.......:eek:

Well, it does sound like that he didn't bother to join TPS when he able to. Naturally as a taxpayer, I thanks him for not joining early since it saved us money in the long run,

xylophone

Naturally as a taxpayer, I thanks him for not joining early since it saved us money in the long run,

Tsk, tsk, where's your altruism, man?:)

Benzene

JoeCrystal wrote: »

Well, it does sound like that he didn't bother to join TPS when he able to. Naturally as a taxpayer, I thanks him for not joining early since it saved us money in the long run,

Thanks for your comments. I do see your point now! A mistake that I do regret

bostonerimus

I'll assume you have no other debt than the mortgage as you should pay off things like credit cards as that will net you a large guaranteed return.

Have you thought about a S&S ISA. This won't reduce your taxable income, but it will grow tax free and be tax free on withdrawal. I't is a nice compliment to a pension plan.

zagubov

Chapuys wrote: »

You can also make extra payments (AVC) into the teacher pension and also get an Additional Pension if you have the spare change and also gain Faster accrual by paying more.

You need to investigate Faster Accrual on your TPS account. It's nobody's job to sell you it, as you're the only person (well alongside your dependants) who benefits from it. Then Additional pension and maybe the AVC after that. I took an AVC with the Pru and found it very expensive for what it was getting me.

It's likely better than paying off your mortgage early.

Benzene

Thanks bostonerimus and zagubov!

I dont have any other debts apart from 1.79% low rate mortgage.

With Faster Accrual option, I would ask for a quote, but I understand I would not benefit from having a seperate 'pension pot' that can be initiated while I am working. With AVC, I understand I have that option.

atush

zagubov wrote: »

You need to investigate Faster Accrual on your TPS account. It's nobody's job to sell you it, as you're the only person (well alongside your dependants) who benefits from it. Then Additional pension and maybe the AVC after that. I took an AVC with the Pru and found it very expensive for what it was getting me.

It's likely better than paying off your mortgage early.

The only problem with added pension- is if the desire to retire before scheme age raises itself. And generally MOST people (apart from the OP dont want to work til 65+ unless they have to. Or if they think so know, they change their mind.

PeacefulWaters

It's amazing how, as you get into your forties, the desire to retire at state retirement age dissipates and many can't wait to escape the drudgery of employment.

Get plans in place to retire earlier. Work longer if you want to when the opportunity to retire comes.

It's so much better than getting disillusioned or ill and not having the means to escape.

A mistake that I do regret

Plucking figures from thin air, that could be well over £100,000 in today's money that you've chucked away.

JoeCrystal

Benzene wrote: »

Thanks for your comments. I do see your point now! A mistake that I do regret

Well, on the plus side, you are in it now. So it will provide a solid foundation now.