to opt out of teaching pension?

[ImanIDIOTO]

6.5% of my earnings
£190 a month

I can’t afford this - is it a terrible idea to opt out?
State pension kicks in right?
So confused

It’s not the best idea but I do have sympathy as of course you need the money now, not at 60 something.

State pension kicks in much later.

It’s a terrible idea.

Don't be daft. It's one of the best schemes around.

Yes, it's a terrible idea to opt out unless you want to be in poverty when you're older. Don't forget you won't get state pension until 67 or 68, and do you think you can keep up teaching until that stage?

Don't throw away one of the most generous pensions out there.

I would keep the pension. I have a university pension and I don't even look at how much money goes to it because it's my salary when I retire.
Don't they put a hefty amount in each month too so it's actually a lot of extra income really (albeit latterly gained!)

State pension is later and much smaller, would be VERY hard to live off. Don’t opt out.

no

Don’t do it, it’s one of the best pension schemes. You won’t get enough to live on from just the state pension.

as in don't do it!

You would be insane

you will never in your life get the return on investment like you do with a teachers pension

Terrible idea which you will regret the rest of your life.

Now that workplace pension schemes are auto enrolled for everyone, I have a suspicion the state pension either won't exist or will be so devalued in 35 years that it will be pointless.

Don't opt out, can you go 50:50 and reduce the amount you are paying in instead? The employer contributions and Death in Service are also things to keep in mind, especially if you don't have life insurance.

Worst idea. You won’t see that £190 because it will be taxable. And it will cost you thousands in retirement. State pension is pennies.

Think the teachers pension is now linked to state pension age. But still a bad idea to not be in it

How old are you OP and are you likely to be able to better afford it in the next few years ?

How old are you? Look at the bottom of your payslip, they add loads too. But I confess I did opt out for about 3 years when I had 2 under 5 and 15hrs only funded. They auto re-enroll so I let that happen. It is a good pension. Plus if you stop your student loan payments may increase, mine lowers whenever I'm paying tax back as exam boards are not capable apparently.

People would give their right arm to be in a pension with the benefits offered by Teachers Pensions.

Stay in the scheme whatever you do. Cut your cloth in any way you need to, but don't pull out of the pension scheme.

The teacher pension was changed by this government a while ago and it is now worse than it was. One way, for example, is that unless you are very near retirement now, you cannot take it early and it only starts from state pension age.

That being said, definitely stay in it if you can, especially if you are younger. Who knows whether there will be a standard state pension by the time you retire. It could be means tested or not exist in that form at all.

You're not unreasonable to feel frustrated that it's a large chunk of money that you could do with having but if at all possible to survive whilst continuing to pay into it then it really really is the best thing to do. The Teachers pension scheme isn't as generous as it used to be but is still one of the best pension schemes around.

OP I did it when I was saving for our wedding. It isn't a good idea if you can get by, but if you can't get by without the £190 then I'd recommend only doing it for a short period of time. Like the others are saying, it's a very good pension

People would give their right arm to be in a pension with the benefits offered by Teachers Pensions

They don’t need to give their right arm. Just become a teacher

You would be utterly utterly bonkers. Do whatever you can to stay in because you will only regret it massively further down the line. It is by far and away your best option for retirement.

Worse than it was but still career average with high employer contributions. Most private add 3%, 5% is considered great. Tps is triple that or more still.

What else have you already cut spending on?
The pension should be one of the last things you cut. It's difficult now, bit it will be much harder when your are 70 and don't have it.
The uplift to your salary will be less than 190 if you move out, as it will all get taxed. You are also turning down an aprox 23% payrise - all be it one that isn't accessible for decades.