Teachers pension advice

bigbeff

Hi, 

I am 41 and have held a teachers pension for years - I think I've got 14 1/2 years service. I have been working part time for the last 4 years and private tutoring. I am aware I need to top up my pension and have done this for a couple of years using faster accruals. Is this the best way or should I be looking at purchasing AVCs instead? I need to reapply for faster accruals by April for this coming tax year if that is best? Or would I be better off looking at a private pension scheme for my tutoring income? Thanks- I don't really understand how working part-time affects my pension except I wasn't paying as much into it... I want to make sure I still have plenty if ever I get to retire 😂

Thank you in advance 

dunstonh

. Is this the best way or should I be looking at purchasing AVCs instead?

There are more than two ways.     For example, in addition to AVC and accrual rate, you have the additional pension, SIPPs/personal pensions, LISA, S&S ISA, and for you unless you started one before last year), S&S ISA, spouse (many forget that similar options via spouse can be better than being too heavy in one name).

 I need to reapply for faster accruals by April for this coming tax year if that is best? Or would I be better off looking at a private pension scheme for my tutoring income? 

it boils down to your objectives and what fits best.   If you are looking at retiring at the scheme age, then options linked directly to the scheme (accrual/additional pension) are usually better value for money.   If you are looking for earlier retirement, then personal pensions can come more into play (to fund the gap until scheme pension is viable to take)

 I don't really understand how working part-time affects my pension except I wasn't paying as much into it..

It doesn't affect it at all.    The impact is additional income and getting used a living standard based on that additional income.   In turn, that could mean a greater drop in income in retirement and having to get used to a lower standard of living.    That is where retirement planning and pensions come into play.

bigbeff

Thank you. I'd love to retire early but not sure that's possible 😂

I do have a house I rent out and a LISA..  its just trying to work out my best action plan. I might look at private pensions for my tutoring... at the moment the faster accruals mean I pay an extra hundred odd a month on teachers pension. So many options, it's hard to know what is best!

sevenhills

bigbeff said:

Thank you. I'd love to retire early but not sure that's possible 😂

I do have a house I rent out and a LISA..  its just trying to work out my best action plan. I might look at private pensions for my tutoring... at the moment the faster accruals mean I pay an extra hundred odd a month on teachers pension. So many options, it's hard to know what is best!

Do you pay the higher rate of income tax? Getting your earnings to only pay 20% tax could be an aim.

bigbeff

No, only the 20% at the moment.