Break from Teacher Pension

xylophone

I'm planning to start it again,

This year, next year sometime, never....?

The road to hell (poorer retirement) is paved with good intentions....:eek:

JoeCrystal

Another thing to bear in mind is that Teacher Pension also has death in service benefit as well. It was mentioned on this forum that a widow who was told that she would get a widow's pension except that her husband opted out of LGPS due to saving up for something else and never opted back in. Quite a sad story.

Silvertabby

JoeCrystal wrote: »

Another thing to bear in mind is that Teacher Pension also has death in service benefit as well. It was mentioned on this forum that a widow who was told that she would get a widow's pension except that her husband opted out of LGPS due to saving up for something else and never opted back in. Quite a sad story.

Yes - that was from me. Chap opted out to pay for his wedding, funnily(not) enough. To make things worse, because he had been in the scheme for less than 2 years, he took a total refund of his pension contributions. He never re-joined the LGPS. 2/3 children later, he was tragically killed in a car accident. Before she could be stopped, the husband's line manager told the widow not to worry about money, as she would get a tax free lump sum of 3 times his salary plus a pension for her for life, plus pensions for the children until they finished full time education.

She didn't get a penny.

Dazed_and_confused

or insight on the implications etc?

As well as all the valid points already raised do you realise you will have to start paying more tax if you were to leave the Teachers Pension scheme.

So whatever you believed you would save would in reality be less.

There's not many post on these boards who want to do something that increases their tax deductions

FatherAbraham

Unknownbloke wrote: »

Hi,
I guess I'm looking for a bit of advice as I'm being told conflicting things.

For context I have a teacher pension which I've paid into since I began teaching 9 years ago and I'm looking to take a 1 year break to save for and pay for a wedding and pay towards the upkeep of a house I've bought in Italy. I'm also looking to move an live in Italy at some point within the next 2 to 4 years with my partner at an international school but it's unlikely I will find a school that pays into the teacher pension scheme in the UK.

I'm being told by some colleagues I should 100% not take a break as it isn't worth it. But at the same time if I don't then I'll end up getting into debt to pay for the wedding etc and it's preferable me moving to Italy with no debt as employment conditions are less stable and I don't want to be worrying about loans or credit cards. I think it'd also be easier to save up with that extra income.

Does anyone have any advice on what I should do or insight on the implications etc?

Cheers

Hmm, Italy.

Do you have a codice fiscale already, from your house purchase?

Some private education institutes in Italy are profoundly corrupt. Make that you check your Instituto Nazionale della Previdenza Sociale (INPS) account annuali, tuo due that your contributions are being paid. State pensions in Italy are higher than in the UK, and it's important to ensure that you're credited with your payments into the system.

Brexit? Consider the serious damage which could be done to your retirement if the UK leaves the EEA Social Security Agreement and you only spent a limited number of years paying into the Italian system.

Unknownbloke

Hmm, Italy.

Do you have a codice fiscale already, from your house purchase?

Some private education institutes in Italy are profoundly corrupt. Make that you check your Instituto Nazionale della Previdenza Sociale (INPS) account annuali, tuo due that your contributions are being paid. State pensions in Italy are higher than in the UK, and it's important to ensure that you're credited with your payments into the system.

Brexit? Consider the serious damage which could be done to your retirement if the UK leaves the EEA Social Security Agreement and you only spent a limited number of years paying into the Italian system.

Hi,
Yes, my partner is Italian and for various reasons we won't be stopping in the UK.

I will look into the pension stuff when I move in a few years and 100% will be checking contributions for the reasons you've stated. Thank you for passing that on!