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Original poster

Teacher Pension PLUS state pension?

59 replies

starchildmum · 31/03/2021 22:11

Hello

I was wondering if I will get teachers pension AND state pension?

My state pension forecast estimates currently £99 per week on the government website. I have paid NI contributions for many years.

For my teachers Pension, I had opted out for some years, but opted back in and currently accumulated £ 3000 annually ( around £ 2000 from the previous final salary scheme and 1000 from the average salary scheme)

Does that mean my annual 99£ x 52 week will be 5148 PLUS 3000 annually ( if I stopped working now without any additional built up?)

Thank you!

OP posts:
Oblahdeeoblahdoe · 31/03/2021 22:15

Firstly, yes you will receive both. Secondly, why is your state pension so low? Can an I ask how old you are?

HollowTalk · 31/03/2021 22:17

Yes you'll get both, but again, why is your state pension so low? How old are you? Have you worked throughout your adult life?

Original poster
starchildmum · 31/03/2021 22:17

I am 40 :-)

OP posts:
HollowTalk · 31/03/2021 22:18

I think you need 30 years of NI contributions to get the full amount.

Original poster
starchildmum · 31/03/2021 22:19

Well wait... 41 turning 42

OP posts:
Original poster
starchildmum · 31/03/2021 22:25

www.gov.uk/new-state-pension

It says I need 10 qualifying years ( I have 15), I need 30 to get full state pension which is around £ 175 per week. But I guess around £ 130 would be acceptable too.

OP posts:
MichelleScarn · 31/03/2021 22:29

You're around same age as me, I'm being led to by what I've read there won't be a state pension in the next 20 or so years, so hoping that's not true!

Xenia · 31/03/2021 22:30

Yes but remember they are taxed if over the tax limit when added together.

converseandjeans · 31/03/2021 22:32

You won't get state pension until you are 67?

KihoBebiluPute · 31/03/2021 22:38

Well it's £99 if you stopped working now. If you continue paying NI until you have 35 years of contributions then you will get full state pension.

Simultaneously your continued contributions into your teacher pension will increase that too.

Oblahdeeoblahdoe · 31/03/2021 22:38

You have another 25 years to go, at least so the state pension will be a lot more than £175 by then. My advice would be to make additional voluntary contributions if you can afford it, to your teachers pension.

Original poster
starchildmum · 31/03/2021 22:42

Thank you. Just wanted to get an update and see if my calculations were correct.

OP posts:
HollowTalk · 31/03/2021 22:50

They're just saying that if you stopped work/paying NI contributions now, that's what you'd get in 20-30 years' time.

BarbaraofSeville · 01/04/2021 02:58

You need 35 years NI contributions for a full state pension.

You have about 25 years before you reach state retirement age, based on current rules so if you work enough to pay NI contributions in that time, you won't need any voluntary top ups and have a few years spare to achieve a full state pension.

If you're behind with the teachers pension you can buy additional voluntary contributions, but you should at least keep paying the normal amount if you can at all afford it, as the employer contribution makes it such a valuable benefit.

Cocomarine · 01/04/2021 11:47

@converseandjeans

You won't get state pension until you are 67?
It’s a little confusing as OP doesn’t seem to know how old she is 😉 but sounds like she probably has a State Pension Age of 68.
LarsErickssong · 01/04/2021 12:08

@MichelleScarn

You're around same age as me, I'm being led to by what I've read there won't be a state pension in the next 20 or so years, so hoping that's not true!
There likely won't be (hence the current push for workplace pensions and auto enrolment) but it won't just be taken away from you so you get nothing despite contributing for a long time, no one knows what will likely happen but you will still get a pension of sorts.
sashh · 01/04/2021 12:20

Just a word of morning.

That's how things stand NOW. Rules are changing all the time and Contribution based ESA which is paid if a) you are unable to work and b) have paid enough NI contributions is reduced if you have a private or employer pension.

I can see the same happening with the state pension.

You used to be able to get a second state pension but cannot any more.

ScarlettDarling · 01/04/2021 12:30

Just wondering, does working part time impact on my state pension? So, if I pay NI contributions for 35 years but 30 of them are based on part time work, would I still receive full state pension?

HollowTalk · 01/04/2021 12:54

I think that's OK but it will affect your work pension as it's based on how much you earn during that time. I worked p/t for ten years and my XH worked f/t so his pension was much more than mine.

Cocomarine · 01/04/2021 13:38

@ScarlettDarling

Just wondering, does working part time impact on my state pension? So, if I pay NI contributions for 35 years but 30 of them are based on part time work, would I still receive full state pension?
Your state pension isn’t based on what you’ve earned, the exact amount of NI paid, or how many hours you work.

The key term is “qualifying year” - and that’s whether you made enough contributions that tax year - regardless of the hours you work.

For 2020/2021, if you are employed and earn at least £183 pw and pay NI - then that year will qualify as one of your 35. In previous years, the rate was lower - it changes every year with the Budget, just as tax allowances do. That’s £9516pa, so many part time workers will reach that threshold.

However, that’s not the full story. There are various NI credits - for example, if you have children under 12 and you claim CB (you MUST claim CB for this) then you will get an NI credit which means you can still get the qualifying year.

The best thing to do, is check your personal forecast:

www.gov.uk/check-state-pension

You can buy missed years, and it’s very good value to do so!

Cocomarine · 01/04/2021 13:49

Just correcting my post above.
£183pw is the level at which you as an individual will start to pay NI.
That’s called the Primary Threshold.

There is also the LEL (Lower Earnings Limit) which is currently £120pw. From this level, you don’t pay any NI, but you accrue benefits (like state pension) as if you had.

So the threshold for part time workers to accrue qualifying years is actually fairly low.

But please - do check your own forecast on the link that I gave! Pensions are so important that you should always check your own individual record, and not rely on MN for anything other than a point of what to consider! Cos you risk getting people like me posting about PT and then thinking a few minutes later - oh, I didn’t mention LEL 🤣

StaffRepFeistyClub · 01/04/2021 13:51

Yes you will get both.

You can also boost your teacher pension. It is well worth investigating that given that you opted out of TPS for a few years.

If you work for an indie be careful as some of them are leaving the TPS

Hazelnut5 · 01/04/2021 13:51

@ScarlettDarling It’s not worked out on whether you work part time or full time; it’s done by whether you’ve paid enough NI each year. You also get credits for other things like claiming child benefit.

You can check your record by going to www.gov.uk/check-state-pension.

Hazelnut5 · 01/04/2021 13:53

Ooh cross post with Cocomarine who explains it all brilliantly.

StaffRepFeistyClub · 01/04/2021 13:55

And make sure that you log onto the TPS webpage - to check your forecast statement. You can then see what options you have to boost your pension.

Lots on there since the McCoud judgment