Teacher pension scheme HELP

[2018LO]

Hi,

I was wondering if any teacher mums on here have ever opted out of the TPS for a short period of time?

From what I can make out you can opt out and opt back in and this is what I wanted to do just for a year to save as we're currently trying to conceive and worried about money.

I pay almost £300 a month and feel as though for the sake of one year this money could better prepare us for what's to come (£3,600)

Thanks for any advice.
LO x

Do not do this. You'll absolutely regret it. You won't get £300 back as you currently get a tax break with pension payments so you'll pay more tax. You may get £200 back. Unless you're absolutely desperate I'd avoid this at all costs. £3600 now will be worth so much in TPS in 30 years. Also once out, it can be difficult to be motivated to get back in.

Also why do you need extra money when you're not even pregnant?

Agree with ourkid

You won't go back in if you come out (even if you think you will) and you'd be losing extremely valuable benefits.

Another don't do it. You are currently 'contracted out' that means you are paying less national insurance because you are paying in to the TPS.

If you stop paying in to the TPS then your NI will go up. You might find you are £1 a month richer but you will not be in the scheme.

If something happens such as ill health and you are not in the scheme can you claim?

I forgot to add, as well as what you pay in your employer also pays in, plus you get tax relief.

Yes forget the life insurance element. V important if you do have children. The same cover would cost you £30 a month probably.

What is the worry about money?

Is it the things you need to buy for the baby - in which case, don’t worry, you really don’t need all the stuff people promote. And you’ll find lots of people will give you stuff.

• or is it getting through maternity leave while still paying all the bills. I’d just save regular small amounts or focus on clearing debt, and wait to see what happens.

Better to concentrate on where you can economise a bit - moving to own brand food & toiletries was the best one I found. Saved a fortune.

Assuming you are a 20% tax payer, every £300 you don’t pay into the pension costs you £60 in tax relief plus whatever the school contribute - perhaps another £300 - so it’s a really expensive option.

Another one saying please don't! You'll lose out on so much more than £300; the employer contribution is more than yours and the £300 includes tax relief so as a PP said, more like £200 cash "saved" would be actually the £300 lost plus the contribution from TPS (£500?)

The employer’s contribution is 16.48%. I would strongly recommend not opting out.

Do not do this, you will regret it.