To opt out of my teaching pension?

[Artfullydead]

Just that, really ... any thoughts?

We could really, really use the extra money tbh.

My dh is a supply teacher and has just landed a one year teaching contract that may or may not be extended. Teacher's pension scheme membership was included but we have had to opt out, even though it sickens us to do so as its a really good pension scheme, but they would have been deducting about £300 per month and we just can't afford that - I would stay in if you can afford it, but if not, then sometimes you have to think about surviving now, and hope your situation improves before you are pension age.

How old are you?

Stay in. Try to think for the long term. It really is a very good scheme. I was paying in for years when we were struggling (small kids, mortage etc) but now we're having a great time.

mortgage

You can opt out for a few years then opt back in again. I opted out 2 years ago but I knew I wouldn't be staying in teaching (I'm leaving this year). Not sure how much impact opting out would have but if you're planning to stay in teaching until age 69 the best people to speak to are Teachers' Pensions, they are really helpful. You could also try getting some financial advice from the Wesleyan. They are good and deal a lot with teachers. Good luck x

Unless you have a guaranteed inheritance, I would not do it.

You’d be crazy. Don’t

Please please please dont

Please don't opt out you are in one of the best pensions around even when the proposed changes go through.

I think you are looking at this the wrong way you need to look at your actual take home (net) after deductions and budget from there not the other way round (gross).

So many people don't think about the future but there will probably be no state pension by the time most of us retire so pay in to your pension so you will have something, you can't rely on others or the government to pay for you in your retirement the onus is on you to make these provisions. You may be in debt now and it may seem money's tight but you are earning think about the fact you won't be working and still have living costs to cover how will you manage without a pension.

General advice from experts is that it is best available don't do it!

I would not do it.

Maybe you could pick up another pt job? Tutoring? Or anything really. I would not dip into any savings like that. I know it sounds tempting, but it's a really really last resort kind of thing to do. My father did this and I swore that my DH and I would never do it. I wish I had better answers for you, I really do, but trust me, in the long run, it will bite you in the ass.

Best of luck to you.

I'm a FT English HoD with 2 dcs. No way will I be going into school during the next two holidays. I'm going away for 2 weeks at Easter and I'll do my marking at the weekends on either side of the hols.

Every person on this thread has said stay-in.

Far too many people find themselves in poverty in old age because most don't pay enough into pensions when younger. You don't want to be one of them.

Sacrificing today for the long term benefit of a regular income in old age is part of being a grown up and understanding that although the future seems far off, providing for it is the sensible thing to do. I'm sure you know that Op.

Look into other ways to save money - things like altering your utility providers, your insurance providers, mobile deals, cutting down on grocery spending by moving down a brand, drawing up a budget etc etc. Do all of these before you even consider pulling out of the pension.

Don't fall into the trap of thinking the future and old age will never come.

I personally wouldn’t ever opt out of my pension as id not only lose what I pay but employer contributions to and it really adds up!
A friend of mine went through training with her local council and is a registrar. She can pick and choose what weddings she takes on during the school holidays and this really tops her wages off. For her she looks online at bookings and picks what she wants to take.... maybe an alternative for you to earn extra cash that suits you?

If you plan it carefully so that you can actually pay back significant debt now and then buy additional years to make up for it later, then maybe. But I really wouldn't gamble against not needing a pension, no matter your family history.

Don't! It's free money and an amazing deal you will struggle to match anywhere.

Remember, you can still retire early. If you're like Mrs. T then you can consider taking it at 55 (though they will reduce the value of it to allow for taking it early).

I had one pension I started at 18, and contributed £1000 to over the next 6 yrs. It's now worth £100,000 as a transfer value some 25 yrs after I left (or I think about £6,000 per year as a pension when I'm 65).

Cut back on everything else but not your pension. Other than housing and food everything else is a luxury, that you might regret if you live to 100.

Mrs. T's teachers pension is pretty decent, roll on 5 yrs time when she can take it early.

You can't buy extra years at the normal rate. We've tried!

Sorry to hear you're having such a hard time OP.

I'm going to echo what everyone else has said and recommend you don't opt out of the pension. It's a great thing to have behind you. I personally have a public sector pension but dislike my job.

But I plan on sticking it out and will be grateful I did when it comes to retirement stage - whether the money goes to myself or DH & DC. And I'm only 28 so another 38 years to go unless I retire early. Also sticking it out for paid maternity leave etc in the meantime

I know things seem hopeless but it could always be worse. You say you are struggling to get by but you are at least able to get by. Imagine you or DH lost your job and you had already cashed out your pension. My point is it could always be worse.

Have you looked at consolidating your debts into one payment at a lower rate of interest? That alone could save you a couple hundred a month or possibly shorten the amount of time you are in debt for?

I'm off on maternity leave and hoping to return to work next year at 4 days a week instead of 5 for nearly 2 years (parental leave) so looking at ways to save the difference at the moment but I won't be cashing my pension for it. I just switched a loan we have from bank to credit union and cut the repayments by 7 months.

Do not do this.
I would swap in a heartbeat.

Go to Citizens Advice. They can give you help with managing debt and restructuring finances.

Forget dying young how about becoming permanently ill with a debilitating chronic condition which is what happened to me. I worked in higher education but have my pension retired early through ill health thank goodness.

I retired early as my husband managed to cash in his pension early but I wish I had my own pension too.Im 52 and the last ten years have flown.To retire knowing you at last will be able to fund the things youve never had time to do whilst working.When younger its hard to see the importance of a pension but you will never regret having it but will regret it if you havnt

I totally feel your pain. DP and I are both teachers and due to buying a house when I was on Mat leave we literally have £50 a week for food and petrol. It’s so so hard and it’s casing me massive anxiety each month, week, day 😩. We’re just trying to hang in until the end of the year when we can re do the mortgage and lower it drastically! Is there anywhere you can cut from before the pension, or maybe just discuss it with them to lower it slightly for a year? For me even £50 a month would make a huge impact x

Wow, the size of teachers' pensions is the first positive thing I've ever read about teaching on these boards! I keep considering it but get put off by all the doom and gloom.

Are you a member of a union?if you’re struggling financially they have a benevolence fund.. I am officer for one of them . Please call them if you’re struggling