easy personal pension for 37yrold

retiredinfrance

Thanks Xylophone, Bostonerimus, HappyHarry Dunstonh and BLB53.
I now see a way forward consisting of
looking at the recommended sites
looking at the different regulations,
realising that I must understand what we are investing in,
investigating extra contributions to the teacher's scheme
and starting to make notes on my information in order to keep reviewing our progress.
I take comfort from the fact that I have been investing in the stock market since the early nineties and although very passive at the moment I think I would be able to make reasonable assessments.

Reading all the information out there now I realise how fortunate I am to have a good teacher's pension. Thanks again

dunstonh

income is income. If she earns £x via employment and £y via self employment then it doesnt matter if she pays into one pension or 10. Pension contributions are controlled by total earnings. So, her workplace one can cover both (as long as the employer scheme allows it - most do). She can have one pension paying in a maximum of £x & £y

ValiantSon

dunstonh wrote: »

income is income. If she earns £x via employment and £y via self employment then it doesnt matter if she pays into one pension or 10. Pension contributions are controlled by total earnings. So, her workplace one can cover both (as long as the employer scheme allows it - most do). She can have one pension paying in a maximum of £x & £y

From what I understand of the OP's posts, their daughter's employer scheme is the TPS. Options for paying extra in are slightly more complex. She could opt for one of the flexbilities, i.e. additional pension or faster accrual (the buy out option is only of relevance in reducing the impact of actuarial reduction). They would need to opt for one of these and then make prescribed increased contributions; they couldn't just say that they were going to put an extra X% in, and the employer's contribution wouldn't change.

retiredinfrance

Thanks Dunstonh and Valiantson. I retired from the TPS 9 years ago, so things might have changed to allow extra contributions, but I have the feeling that there would be no employers contribution. However I will look into it. I have her already in a regular saver scheme and a money saving current account. I think the most important thing for me to do is not to start any scheme that I don't understand. Thanks again.

dunstonh

The TPS has a hybrid scheme for increases. Good value for money but no flexibility in how you take it or when.

ValiantSon

retiredinfrance wrote: »

Thanks Dunstonh and Valiantson. I retired from the TPS 9 years ago, so things might have changed to allow extra contributions, but I have the feeling that there would be no employers contribution. However I will look into it. I have her already in a regular saver scheme and a money saving current account. I think the most important thing for me to do is not to start any scheme that I don't understand. Thanks again.

There wouldn't be any increase in employer's contributions, but that is almost irrelevant as it is a DB scheme, so you get the benefits defined under the scheme rules. Buying additional pension or using faster accrual get you a bigger pension. The relationship between percentage contributions and benefits are not the same as in a DC scheme where you are buying investments.

retiredinfrance

Thanks Valiantson. Yes, this is a definite approach to the problem as the benefits of the DB scheme are excellent and also she could make it into a worthwhile little pot while she is still half and half. Although she probably doesn't view the teaching as permanent long term it could still be turned into a useful pot instead of a tiny pot. Afterall she has 3 years contributions already in. Now to persuade her.... Also, we can still keep looking at a longer term , possibly a basicSIPP with a basic index-y asset allocation. Actually, although I am retired , I was impressed with the like of the Vanguard funds as a savings mechanism. Thanks again for your help- the help of all who replied is much appreciated.

retiredinfrance

Thanks Dunstonh. "Good value for money" is the key to it. Even if she has to take it later the small pot it represents would be something to look forward to. I am thinking of increasing contributions and setting up a basic SIPP with basic asset allocation. After all the part-time teaching might last longer than she thinks. When I was teaching I took out a small PP and the £1400 I get once a year is nice to have. Thanks again.