2k a year pay rise = £66 extra a month!

[missbunnyrabbit]

I'm a teacher and was so excited to go the next point on the scale. Checked my pay today, the first pay with my new salary approved on it, to see I get a grand total of £66 extra a month!

2k sounds like such a lot! But it really isn't after everything is taken off.

Am I being ungrateful?

Once you reach £100k you start to lose your personal allowance which means you take home less of each pound over the threshold. Her actual tax rate will be 40% but when you factor in the loss of the personal allowance the effective tax rate is higher.

@GCAndProud

I have just gone and done the calculator again on the TPS website. It tells me that even if my salary stays the same at around £51,000, I am looking at over 40k annual income plus a lump sum of £270k on retirement. That is an amazing pension scheme which is well worth paying into. I think the pp who was claiming that she would get only 6k p/a is on quite a low hours fraction and is planning on retiring 7 years early. But if you work f/t until your state retirement, you should have a financially secure retirement which so many others will not. Then you won't begrudge your contributions.

Indeed. I’d be very interested to hear @Goinghome20 come back and tell us what the equivalent full time worker equivalent would be, plus lump sum, when taken at 67. Or her hours, plus the lump sum, without the reduction for early retirement. I don’t think it’s very fair to put people off a very good pension scheme (despite the increase in contributions for it in recent years).

Public sector and just got a whopping £50 a month payrise for busting a gut on the application process.
What are you going to do with the £66?

In April brace for another 1.25% NI rise so don't get too excited about the £68 as you will lose a little bit off that.

Most teachers end up with a pension that is around 5/8th of their full time salary if they worked from 22-65 . So even on the almost basic scale you could end up with 20K pension and 10K state pension.

I am looking at over 40k annual income plus a lump sum of £270k on retirement.

That's an enormous lump sum. How is it calculated?

I wouldn’t be complaining if I was £66 a month better off.

You are contributing to a gold standard guaranteed public sector pension - nicely I say, reassess your good fortune & stop complaining.

I am saying that very very nicely.

@SwedishEdith

I am looking at over 40k annual income plus a lump sum of £270k on retirement.

That's an enormous lump sum. How is it calculated?

Don't know who posted tis BUT if your lump sum is part of your pension pot, you can't take £270K- it's a bit less than that.

what kind of work are you doing?

Certainly not teaching unless head of a large comp etc.

Those figures equate to a salary of around £100Kpa

I had to jump through all the hoops to move to ups and it's a similar increase. Still, at least I'm now back up to where I was before going on supply when my kids were little.

@UniversalAunt

You are contributing to a gold standard guaranteed public sector pension - nicely I say, reassess your good fortune & stop complaining.

I am saying that very very nicely.

Yup

And if you don't like it find another job

Ha ha I’m ups2 and I never felt moved when I went from main to upper. We just have to accept we didn’t pick a job for the money it pays

@GCAndProud So your pension will be 4/5ths of your salary of £50K plus a lump sum of £270K? I think you have miscalculated somewhere.

@missbunnyrabbit Many youngish graduates of your age in professional jobs do not have pensions as part of their salary package, and if they do, they don't guarantee anything like the risk-free pension you will get one day.

They should be ashamed of themselves that a person on 27k is basically paying tax and contributions etc of over 50%

Over 50%?

The OP says she is on around £29600.

She gives these figures for monthly salary and deductions:
Gross: 2472
NI: 201
Tax: 242
Student loan: 17
Pension (8.6%): 212

Deductions add up to £672
So monthly take home must be £1800.

£1800 is a lot more than half of £2472.

I have had a gin already so maybe my calculations are wrong? OP didn't actually say what her total take home is.

[quote JinglingHellsBells]@GCAndProud So your pension will be 4/5ths of your salary of £50K plus a lump sum of £270K? I think you have miscalculated somewhere.[/quote]
I've just played about with it assuming 45 years of f/t work (which most people won't manage anyway?) and can't get that figure for 51k salary.

My husband is on considerably less money than teachers and would love any rise. He didn't get so much as a box of biscuits from his employers this year.

I'd love a job where I could actually contribute but have just been deemed unfit to work for another 6 months, after having a stroke in July.

‘That’s every private sector job I’ve ever worked in! You reach the top of the payscale and that’s it - for that job. Next step, if you want to go for it - promotion.’

That’s my experience as well, at top of private sector pay scale any increment was modest & across the grades, any jam on that came from performance based bonuses. That said it took some time to get to the top of the pay scale, no easy bounces.

Any one else think the reduction in pension discriminates against part time MAINLY female teachers

This is more than I have ever got as a non-teacher so I think you are being unreasonable to moan. I am just jealous though.

[quote JinglingHellsBells]@GCAndProud So your pension will be 4/5ths of your salary of £50K plus a lump sum of £270K? I think you have miscalculated somewhere.[/quote]
Yeah it does sound high but that is what came up and I did check quite carefully that I put in the correct info. Someone else is welcome to try doing the calculation using my details if they want to. I’m FT with no breaks, born in 1984 and earn 51000. I joined in 2013. I’ve not accounted for my salary increasing since I joined but I’ve equally not estimated any pay rises during that period.

@mnahmnah

Wait until you’re on UPS3 and you realise that you will never get paid any more. Ever. No matter how good you are at your job, the results, the responsibility etc. I don’t know of another profession where you reach a limit and get no further recognition on your performance. It’s depressing. They’d soon be onto you if you don’t perform though!

Educational Psychologists. It’s why they’re leaving local authorities in their droves to go private. Hence the huge shortage.

@GCAndProud
Not sure how you have calculated your pension! Even with 47 years service at £51000 current salary you would get a pension of 30K and a lump sum of 90K, not peanuts but OK- mind you, not many teachers last 47 years!

@ThePlumVan

Any one else think the reduction in pension discriminates against part time MAINLY female teachers

No. I think it impacts female teachers more than men, but not discriminates.

I fully support that state pension allows the full NI credit for a parent who chooses not to work, or works too few hours to pay NI. Even up to 12 years old.

I don’t think that occupational pension schemes should do the same. Women - and men - need to make their choices wisely and take responsibility for them.

@mnahmnah

Wait until you’re on UPS3 and you realise that you will never get paid any more. Ever. No matter how good you are at your job, the results, the responsibility etc. I don’t know of another profession where you reach a limit and get no further recognition on your performance. It’s depressing. They’d soon be onto you if you don’t perform though!

This is a misrepresentation of career progression in teaching. You can go for leadership roles, or for a TLR, or for a lead practitioner role.