To opt out of my teaching pension?

[Artfullydead]

Just that, really ... any thoughts?

We could really, really use the extra money tbh.

Please don't opt out, no-one should opt-out of public sector defined benefit pensions. For those pp who have opted-out, please investigate rejoining as soon as you can.

The death in service benefit alone is very generous and important for your children if anything were to happen to you.

OP - you sound utterly frazzled and worn out.

Can you ‘take a break’ from the Scheme for a couple of years to enable you to drop a day to recover your sanity? Then go back full time and resume contributions?

Or reduce contributions while getting on top of debt?

Thing you do need some basic financial advice . I know I do!

Sluggish I am not sure how you calculated that.
OP I get you. Single mum, English teacher. I am defeated too. Exh left me with debt and life is actually pretty shitty.

Do you actually have a family history of the same illness that is sadly likely to take your life relatively early or are you assuming you will sadly die young as family have done?

Look at doing anything to address your financial situation before even considering doing this.

I opted out for a few years until I got a promotion and could afford it again. I work in the public sector, not teaching.

However this was because I knew I could get promoted and I’d been paying in since I was 21. I opted out at around age 30.

I would never do it as a long term thing. Plus my career average earnings will be high due to the promotions fairly early on in my career.

Men pick up another woman about 2 weeks after their wife dies

Crikey, I'd better tell my Dad he's doing it wrong, then. Mum's been dead over a month now.

TBH OP, it sounds like the pension isn't the main issue here. "Wrong job" and "debt" sound more like it. Both of those are fixable, if you want to. Life is too short anyway for that sort of worry.

Thing is, we've looked at finances but there comes a point where you just need more money!

Quite a dismissive view you have of your husband and “all men”.

I married to a widower. He didn’t date for 5 years after his wife died.
We both have pensions (and other assets) and we both have named our own children as sole beneficiaries.

The TPS is an excellent scheme.
It should be a last resort to come out of it, and it doesn’t sound like you’ve been through all options.

Just because your mum died young doesn’t mean you will.

Most men, then.

Don't do it. I resented paying it when I was a struggling single parent but when things at school went pear shaped as I was nearing 60 (academisation, new bully of a head etc) I could leave with 30 yrs of teachers pension even though I was years off my State Pension.

With the employer match you're basically giving away part of your salary by not contributing.

I do agree that you maybe need to get slightly more on top of the precise financial details of your outgoings before doing something as drastic as stopping pension contributions.

Do take into account the fact that you get to spend a lot of time with your kids during the holidays. Missing out on weeknight evenings when tensions are running high and everyone is hectic isn't the loss I think you're imagining.

You sound quite down in general about not just your financial situation but also your marriage.

I’d really look into this extremely carefully before making a decision to opt out. It is highly unlikely to be a wise decision. Make sure you definitely have all your facts clear beforehand.

From what you’ve said, the harsh truth is that you cannot afford to be PT.

You do sound very unhappy. I’d echo the PPs who suggest making an appointment to see your GP. They can sign you off sick if you’re MH means you aren’t well enough to be at work.

My defined benefit pension scheme is the main reason I continue to work FT. I put extra money into a defined contribution scheme, but it certainly isn’t as good value as the DB one.

I personally find the idea of the death in service payment hugely comforting. If anything happens to me, I know that DH and the DC will be OK financially.

Do you want to leave teaching? Can you downsize? Move? Anything to make you happier?

if I got signed off sick it would be like putting a flashing neon sign above my classroom saying "start capability"

Anyway I do appreciate the advice and have learned about pensions.

BTW both my next holidays will be spent in school.

If you have not already, try the money saving expert boards for budget and debt advice. Speaking as a self employed person, your pension is a really good deal and one you should just leave intact. For now, see where you can cut back - if you are not getting tax credits you must have a joint income of over 30k a year, offering some type of wriggle room. At worse, you may be able to get advice on freezing your debts, giving you breathing space. Childcare costs are a bitch, but they are not forever.

No, don't do it. You may well be thankful for it one day. I always paid in, and since DH died I am just so grateful for every penny. Believe me the day will come when it doesn't seem such a burden to pay it. It's a good pension and you would be unwise to stop paying in.

You need a different school. I’m secondary English and SENCO. I work full time and have two kids and I sure as hell won’t be spending the next two holidays in school. Not all schools grind you down like yours is doing. The answer is to change employers, not ditch your pension and fuck up your future.

Actually you can opt out and opt back in again. With auto enrolment you will actually be put back in without you doing anything in three years time. But that's IF and I can't stress how big the IF is there are no changes to your scheme meantime. For example, your scheme can close to new entrants at any time, although there would be a consultation about that.

The thing is though, as pps have said, because you get tax relief on your contributions you won't get nearly as much back as you think. And your employer contribution is free money... it would be an absolute last resort. You also mention a family history of ill health - the ill health pension is about a million times better than anything you'll get from the government.

Huh?

What part isn't real, that a teacher with childcare costs, debt and a mortgage can't be struggling financially, that revision classes are happening over half term and Easter ... ?

I am also in during half term and Easter.

Maybe since you have this in mind run the numbers as suggested and see whether opting out would even give you the funds you need to drop a day at work. I can’t believe the numbers would actually cover a 20% loss in salary. If it doesn’t then you can stop thinking about it.

i think it has been said several times that your DIB services can be made over to your children. If this is right think about doing this to drop your worries about if DH just giving it to his new wife. If you stay in your pension.

Sorry you are in all Easter and Half term. I knew teachers were busy but didn’t know they had to work holidays too.