Teacher Pension Query

Jimmithecat

Do not opt out of the TPS

Book an appointment with the Wesleyan for advice (free with no hard sell) and to get a better understanding of the value of your pension
https://www.wesleyan.co.uk/pensions-and-retirement/retirement-advice-teachers

mark5

If you opted out of the pension your take home pay would be roughly £4415 compared to about 3987 now?

You also have a very generous pension just like the nhs but the majority in it don’t seem to appreciate it. 

kaMelo

https://forums.moneysavingexpert.com/discussion/6132694/teacher-pension-queries/p1

You asked this exact question three years ago and unsurprisingly got the same responses then as you're getting now.
Opting out of the TPS would be utter madness, do some research on why it's incredibly cheap for the benefits it gives you and cut your costs elsewhere if you're struggling.

Organgrinder

One thing worth pointing out to you is the size of pension pot you'd need at 60 to get an annuity paying approx £39,000 per annum with annual rise included and paying pension to a spouse/dependents. An annuity rising at 3% per annum would cost you in excess of £1,000,000.

Teachers pensions really are excellent (I'm one) and the career average not only is 57ths but also rises at 1.6% on top of inflation.

Definitely stick with it.

Universidad

MoneySaver241 said:

I am planning to retire at around 60 years old (August 2049).

And what's your plan for retiring at 60 after opting out of one few pension schemes that would help you effect that outcome?

Dazed_and_C0nfused said:

Your contributions are buying you a pension of £1,328

Which you can expect to collect every year for the rest of your life from retirement. And that is from just 1 year of contributions.

MoneySaver, let's say you make it to 84, which is not that great of an age, all told. So that's 1328 lots of 16, which is about 21250 in real terms (more, because of the uplift over CPI). That isn't the total from your career. That's just what you added last year.

Your remuneration is effectively 96,000+ per year, not 75000 per year - you just don't get to collect part of it until you retire.

What you're talking about, in terms that are blunt but largely on the nose for value, is taking a 22 grand pay cut to have about 400 pounds more in your pocket each month. 

That's why nobody can quite fathom it.

Dazed_and_C0nfused

Hopefully the op isn't a maths teacher 😳