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Combining pension

AlwaysLearning123
Posts: 1 Newbie
Hello, complete newbie to Pensions over here. Advice appreciated!
In my current job I am enrolled in Teachers Pension. I also hold a tiny pot with NEST from a previous employer.
Is there any value in transferring the NEST pot over to Teachers Pension? Or is it useful to keep the two separate?
I'm currently working full-time in Education, but I am wondering if I might reduce my employed contract and increase self-employed income in future. In which case, could the NEST account be useful as a place to put voluntary contributions, or would topping up extra into Teachers Pension be of equal value?
Thanks for your help!
In my current job I am enrolled in Teachers Pension. I also hold a tiny pot with NEST from a previous employer.
Is there any value in transferring the NEST pot over to Teachers Pension? Or is it useful to keep the two separate?
I'm currently working full-time in Education, but I am wondering if I might reduce my employed contract and increase self-employed income in future. In which case, could the NEST account be useful as a place to put voluntary contributions, or would topping up extra into Teachers Pension be of equal value?
Thanks for your help!
0
Comments
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First you need to understand the difference between a Defined Benefit ( DB ) pension like the Teachers Pension and a Defined Contribution (DC) pension like NEST
Pension basics | Help with pension basics | MoneyHelper
As a generality DB pensions are much better than DC pensions and the Teachers pension is a very good one.
If you reduce your employed contract, you will be losing some of the pension benefit, so the self employed income would have to be better to compensate.0 -
If you have been a member of TPS for longer than a year a transfer in may well not be possible.0
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If you did keep your NEST pot it wouldn't do any harm. It would be a second source of income that you could use in several ways:As a way of retiring a year or so early without having to take a reduced Teachers' pension.As a spare pot of cash for emergencies, or to pass on to a beneficiary free of inheritance tax (if that should be an issue).As an additional source of funds if the teacher's pension payment system goes into meltdown one month (Capita?)0
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