Transferring Teacher's pension to private pension?

AGT_MSA

Hi there.

My wife was a teacher for 6-7 years and contributed to the teacher's pension scheme. She stopped working as a teacher in 2009 when we had kids and hasn't gone back to the profession (and doesn't plan to). We've finally been able to get access to her account on the teacher's pension website, but it's confusing. It's a defined benefit / final salary pension, so we can't see a full value figure anywhere.

We're aware there are other benefits to the pension scheme, but she wasn't contributing for too long, so we wondered whether it would be worth transferring it out into her private pension. She has a Penfold account as she is now self-employed.

It may not be possible to transfer the value out of the pension either, as it is a final salary pension, I'm not sure. Does anybody have any advice on how you actually find out the value and whether it's worth transferring the money out of there?

Thanks.

p00hsticks

If I've identified the correct pension scheme, a quick google would suggest that a transfer out to a DC scheme is no longer possible

https://www.teacherspensions.co.uk/members/faqs/taking-a-break/transfers.aspx

molerat

You will not be able to transfer out to a non defined benefit scheme.

https://www.teacherspensions.co.uk/members/resources/forms/joining-or-leaving-the-scheme.aspx

AGT_MSA

Thank you both. If she can't transfer out then I guess that makes the questions about whether it's worth it obsolete. I did think it might be better to have all pensions consolidated, but in this case we don't mind it being there.

xylophone

we don't mind it being there.

Gracious of you...

Is she aware of the benefits that her deferred pension offers you/.her/ any children?

https://www.teacherspensions.co.uk/-/media/documents/member/guides/working-life/deferred-july-2017.ashx?rev=89301b3656ef408b8d260208dae12091&hash=D55FC4A83BEE29C04F38FD561B81456B

Universidad

AGT_MSA said:

Thank you both. If she can't transfer out then I guess that makes the questions about whether it's worth it obsolete. I did think it might be better to have all pensions consolidated, but in this case we don't mind it being there.

Transferring from a deferred DB pension to a DC pension is almost never worth it. There have been a few years where in some cases, and at the right time in your life, you could do better transferring DB to DC. due to low interest rates and how that affects transfer valuations. For that reason, plenty of advice about this persists on the internet. But that time is over, and will probably not come back for any of us.

OldBeanz

AGT_MSA said:

Thank you both. If she can't transfer out then I guess that makes the questions about whether it's worth it obsolete. I did think it might be better to have all pensions consolidated, but in this case we don't mind it being there.

It will be subject to a 10.01% inflation increase from next financial year. Nice.