To opt out of my teaching pension?

[Artfullydead]

Just that, really ... any thoughts?

We could really, really use the extra money tbh.

Don’t do it

Do you have a separate private pension that will pay at least the same amount?

It is generally not recommended to opt out. Most IFAs would say to remain in. In the long run it will benefit you.

It would have more long term effects than it’s worth- less pension, smaller lump sum, no in-service death benefits...

I looked into it on maternity leave but decided to keep paying in!

Tempting isn't it, but it's such a favourable rate and I think employers' contributions are going up next year. I'd stay in it if you possibly can (although they're quite good about letting you freeze it temporarily if you're really struggling).

NO DONT DO IT

No private pension. But really struggling to live

Tempting isn't it, but it's such a favourable rate and I think employers' contributions are going up next year. I'd stay in it if you possibly can (although they're quite good about letting you freeze it temporarily if you're really struggling).

Teachers pension is one of the very best. Please don’t opt out.

People shouting not to do it need to give me some more information.

For some more context, I'll be teaching until I'm 69. I probably won't live long enough to claim it much if my family history's anything to go by. Loads of debt and it's not really manageable at this point. It's all killing me.

No, no, no.

Can you not up your income by tutoring instead? I do 4 nights a week and (3 online) and it makes a real difference to my finances.

I've tried but there's just no call for it at all.

How many years would you need to opt out for to get debt under control? Long term, you need a pension but short term you could build in paying off debt instead.

Completely understand the temptation and I've been tempted myself but try and stay in. It's a very good pension and you may very well need it.

Can you not tutor or mark exams to make extra income? What is it that you teach? If you are really struggling get in touch with stepchange which are a charity that deal with people in your situation.
If you opt not to pay in your won't have a pension when you reach 69 so you won't be able to retire because you won't be able to afford it.

I don't know Relax, it's just things are in a right mess and saving money for when I'm nearly in my 70s seems mad in a way.

Don’t do it. Even though the career average scheme creates a slightly less favourable pension than the old final salary scheme, you will still receive a generous pension, with less risk than a private pension.

If you opt out, there is a danger that you become reliant on the extra money each month and leave it too late to start again and build up a good pension pot.

You also lose access to both the spouse/dependents pension and the death in service grant which is a good source of life insurance.

There is a review of the teachers pension pending, so I recommend you wait.

Don’t even consider it. Not for a tiny moment. It’s the best pension you will get and you would be completely bonkers to opt out.

If you’re struggling to live you need to do exam marking / cut out goings but do not opt out of your pension. You’re just making your life so so so much harder later on.

Why will you be teaching until you are 69? How old are you now? When did you start teaching? Some further info would be good.

Honestly don't do it as tempting as it is. Not only will you obviously lose the pention contributions, I believe it is also often classed as a break in service therefore you can lose your death in service payouts ans other benefits.

Can you look at what else you can do to improve your financial situation?

I've already paid in for 16 years so I presume I'd have a smallish pension.

I do mark exams but that's only once a year and it's not a lot of money tbh. No call for tutoring really.

How much do you pay in per month? Do yo7 have dc/dh etc? Maybe we can help make suggestions on how to save that amount elsewhere?

38 now. Started teaching 16 years ago.

I totally get where you’re coming from OP - a few hundred pounds a month out of your salary just seems like so much (I know it does to me - public sector pension, but then I look at the bigger picture). I would advise very strongly against doing it. Are there any other things you can cut back on rather than you pension, which should be an absolute last resort. Could you
Look into paying fifty percent contributions for a short time? (If that’s a possibility - it is where I work).

I don't know how much I pay in a month - several hundred pounds I think.

I have two children who I rarely see