To opt out of my teaching pension?

[Artfullydead]

Just that, really ... any thoughts?

We could really, really use the extra money tbh.

If you can keep your money in, please do. I am 50 now and looking back, I made the same decision. Now, I am really worried as my pension is next to nothing. It becomes all too real. I don't know your scheme but if you can do the minimum for awhile and set a goal for making sure you go back up, but don't stop all together if you can at all help it.

Don’t - I opted out of an NHS pension years ago and regret it . The contributions you make in the early years of a pension are the most valuable . I know this now as I am 50 and we are looking at how soon we can retire .
My advice and I know this sounds dull but just try to cut down what you spend if you can and think of different ways of socialising if you go out a lot - God I sound old and preachy !

You may need to retire early for health reasons. Don’t do it, OP.

I am living on a teacher’s pension which I took five years early at a rate actuarially reduced by 25 per cent. Even so it is a lifeline. It is still one of the best schemes around and, even if things are sticky now, you would be mad to stop it.

My DH and I went through some very impecunious decades and were in the red at the end of the month for years. Still, things got better and I thank my stars I did not stop my pension.

Do not stop your pension.

• come and start a budgeting post and get help tackling your finances
• you can state on the “death in service” form who you would like this payment to go to - so name your children
• as a secondary school English teacher I would be astonished if you couldn’t find tutoring work

You do sound like you are falling apart though, it might be worth getting some mental health support. It’s nothing to be ashamed of.

Your struggle is financial now but in your 50's and 60's your struggle will be health and having the energy to do the teaching job. Most retire early. I would stay in the pension scheme and look for a bit of private tuition to help with finances.

Whatever you decide, speak to a financial advisor / pension expert first. If you’re in a union they might be able to help, and financial advisors often offer an initial consultation free. If you ditch your pension you won’t have any options to retire before state pension age, and the state pension is tiny.

Can you tell me how to get into online tutoring please really really interested

Do not opt out. Teacher Pension is a very good one. The death in service benefits and dependants allowance is really generous and would help your family if you were to die so you could maybe cut out paying a life insurance. The way things are going I sometimes wonder if people in their twenties will have to work until 75 before getting a state pension. You know how hard teaching is so could you really/do you really want to teach until this time as with no pension this is what your options could be. There must be tutoring as shortage of tutors in all areas especially Maths, 11+, SN and GCSE. Sign up to a tutor website such as Tutor Hunt. It does not cost tutors anything and they will find you potential students who you can choose to tutor or decline. You set your own rate of pay per hour and choose if they come to you or you travel to them.

Terms vary between schools. When I went in for extra week over Easter hols to do exam revision I got paid extra days by my school or I could opt to take up to three days off after GCSE students left end of June.

I taught for 23 years as well as taking year mat off twice and left teaching last year aged 56. I felt exhausted and that I had done my bit. Now I just tutor a few hours each week. I can claim my pension in just over 2 more years. I will get between 9 and 10k every year until I die every year on top of my state pension which I cannot claim until I am 67.

There were a few years when my children were always wanting things that I really struggled every month but kept on paying and now as so very glad I did.

Could you remortgage instead?

As I understand it, it's a really good pension so stick with it if you can. Tighten your belt in other ways.

Do. Not. Opt. Out.
Seriously, you won’t get any better than the teaching pension.
I know it’s hard; in the early years when we were paying huge childcare bills it was very tempting to opt out and have a higher net income every month.
And then in more recent years, although childcare bills are long gone, it was still tough seeing over 11 % of my salary disappear straight out into the pension. But you will reap the rewards later. Even if you leave teaching early, the reduced teacher pension is going to be a better bet than anything else

Do not opt out!

Seriously I know it seems like it will ease finances now but this really is a pain today, jam tomorrow situation. The benefit is so valuable. And it really is the only benefit teachers get!

Is there any way you can economize in other areas or earn more now?

Lodger? Rent our your driveway? Match betting? Private tutoring? Running revisions classes? Summer courses? Can DH do something?

I have had various private pensions. I started one straight as I left school and paid in for years, the company went bust so no pension there. Started another paying in large sums but had to stop for a few years due to financial difficulties, out of work... what I had paid in got eaten up in their fees. I did start another one and still paying a lot a month but it's not going to be enough to be able to retire. I was pressured into opting out of the state pension when I first started working, this performed badly so no pension there either. I wish I had had an opportunity to join a pension scheme like the teachers one you are so lucky.

I get where OP is coming from - she’s financially and emotionally struggling in the present paying pension contributions for a period she may not even survive to (if family history is anything to go by).

I was pressured into opting out of the state pension when I first started working, this performed badly so no pension there either. I wish I had had an opportunity to join a pension scheme like the teachers one you are so lucky.

I don’t understand this. Are you saying you won’t have any pension at all? Not even the state pension - approx £160 per week?

Don't opt out! I did when I left to have DD (second baby) because having two at nursery would have eaten all my wages (0.6 HoD of two subjects). Plan was to have the kids, and then return and buy back they years, but that was 14 years ago and the pension rules have changed so if I do go back I've got to start again. I know it's tough but I'd say your pension is the last thing to give up, you'll regret it if you do.

You must also remember that teachers were contracted out of an element of the state pension. This means that you paid lower NI contributions until (2016 ?) your state pension will be less than the maximum available. I will get £78 per week, nothing like £160.
The expectation was that your teachers pension would compensate for it, but if you opt out of that, you will really struggle financially.

Flying daisy can you go into more detail about that. I had no idea!

emoji it was pretty standard for public sector employees to be contracted out of the additional element of the state pension

You can check online how much state pension you will receive. I didn't realise that my A Level, degree and PGCE years counted as contributions. My contribution history only has about 3 incomplete years, due to being in TPS and I'll get the full pension if I work another 9 years, which I intend on doing.

I checked my state pension provision a while back and it isn't the full amount, but I didn't know it was linked to my teachers pension!! I've only got 8 years TP, it stopped when I had DS1 and went part time but I don't know why and when I contacted them no one could tell me either so my two part time years don't count. Ah well, back to it soon and I'll have to just start a new one and pay in as much as I'm allowed to.

What my state pension is less!?!?!? I only taught for a while so im relying on the state one... i had no idea it affected state pension contributions..... i thought when i looked i was on track for enough years for state pension but didnt check the amount.

My future is so depressing. 40 and need new (non teaching) part time work and to save like crazy.

I didnt realise i couldn't buy back years or return if i did return to teaching. Arg. Life really didnt go to plan. I so envy those whove had a stable work history .

The state pension forecast you see online is just that....a forecast. It takes your NI contributions into account, but not the type of work you were employed in, the assumption is that everyone paid full NI. Teachers didn’t as public sector workers were contracted out. There is information about that on MSE, and if you dig about on your Government gateway account, the adjusted state pension is there. Teachers Pensions are also surprisingly helpful if you phone them. TP hinted that there may be a reconsideration of the ‘reduction for contracted out workers’ in the future, but nothing definite yet.