Teachers Pension APB

IAMIAM

Hi, I have asked this before. But I am now in a position to reapply for it. 

I want to purchase £250 additional pension benefit per year, I currently do this. I have around £3500 of the current £7000 limit left that I can buy as I already have a 3 year buy out.

Is it worth/cheaper to continue just buying £250 extra per annum (I pay over 1 year) or actually take out a contract for £3.5k and buy it over 10 years.....

OldBeanz

IAMIAM said:

Hi, I have asked this before. But I am now in a position to reapply for it. 

I want to purchase £250 additional pension benefit per year, I currently do this. I have around £3500 of the current £7000 limit left that I can buy as I already have a 3 year buy out.

Is it worth/cheaper to continue just buying £250 extra per annum (I pay over 1 year) or actually take out a contract for £3.5k and buy it over 10 years.....

This is a calculation that you would be in the best position to make as you can just spoof your age by 1 year 9 times and do the maths.
When I did this for my son it was cheaper to buy additional pension each year rather than buy the total as a one off, however, it appeared better value to buy the £3.5k as the inflation growth was for the £3.5k rather than the £250/£350pa with the annual purchase method you are suggesting.