A pension after retirement?

Stevyn

As a teacher I'm looking forward to taking my Teachers Pension when I get to 60 next year. Someone has told me that once retired it is worth investing in another private pension as a means of saving. Can someone explain this to me, if there is any truth in it?

Brynsam

Why not get the person who told you this to explain what they mean? Whether it is worth doing depends on what you want to achieve, your tax rate etc.

I guess your 'informant' was thinking of tax relief. Have a look at some of the older threads to learn more e.g. https://forums.moneysavingexpert.com/discussion/5928973/pension-contribution-when-not-earning

xylophone

Have you obtained a new state pension forecast?


https://www.gov.uk/check-state-pension

Audaxer

Stevyn wrote: »

As a teacher I'm looking forward to taking my Teachers Pension when I get to 60 next year. Someone has told me that once retired it is worth investing in another private pension as a means of saving. Can someone explain this to me, if there is any truth in it?

You could open a SIPP and get 25% tax relief added to contributions you make each year up to a maximum of £2,880 each year if not working. Tax relief of £720 is added so you have £3,600. As you are over 55 you can draw out the money straight away if you wish, although for the first year with a provider like Hargreaves Lansdown for example, you will need to leave £1,000 in the SIPP to keep it open. After that you can pay in £2,880 every year and draw out £3,600, of which £900 is tax free and £2,700 will be taxed at 20% if you are a basic rate taxpayer on your Teacher's pension. You could therefore make a £180 profit each year from year 2 up to the age of 75 if you do use this method. If you do a search you will find quite a few threads on this forum about this.

xylophone

It is likely that she has been in TPS for a number of years and if so was contracted out until 2016.

It would be worth her while checking her SPF to see whether she could benefit from making voluntary NI contributions.

atush

you could start this pension now and put in as much as yu can afford. It all gets boosted by TR.

Then once retired, you can put in 2880 per year, which the givt boosts to 3600.