Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

Teachers Pension- The final salary

9 replies

zeebra · 20/10/2025 23:10

Are there any teachers out there who can give me the idiot's guide to understanding how it might or might not benefit me to have a break in my teacher's pension? As it happens I have had several breaks at various times (all less than 5 years). I understand these can have a bearing on my pension ( beyond the obvious - less contributions etc) I am a member of a group on SM that tries to explain this but I am still struggling to get my head round the phrases like ‘Unrestricted’ Hypothetical Calculation and ‘Restricted’ Hypothetical Calculation?! and how it means my final salary is calculated (I understand the last year obviously but it is how is it calculated when there is a break in service previously using the terms above). I have read the guides but I almost think I have read it so much I am more confused than ever. I would be very grateful if anyone understands how it works and can explain it succinctly. Tia. (The more basic, the better please!!)

OP posts:
Thelondonone · 20/10/2025 23:14

If you are out over 5 years I don’t think you keep the final salary part-you automatically move fully to career average. But this is not gospel!

abracadabra1980 · 20/10/2025 23:17

Have you tried asking Chat GPT to help you with the terminology? I ask it to help me break things down in a way I can understand regularly, including pension issues and find it enormously helpful.

ShyMaryEllen · 20/10/2025 23:24

If you are on the final salary pension you will get 1/80 of your final salary for every year of contributions, so yes, breaks will impact on what you get.

Most people now are on a career average, or a mix of career average and final salary, but the same calculations apply. It is never a good idea to take a break in pension contributions unless you really have to, but I guess you know that.

I don't know about unrestricted wotsits, but you should be able to get a predicted pension at various ages on the website (ie how much you will get if you retire at 60, 65 or whatever age you hope to do it) based on your own circumstances. Their calculators are quite comprehensive. You can also buy back years, although it is expensive. Also, make sure that your State Pension is up to date without gaps that will mean you have fewer than 35 years' contributions at retirement. That is perhaps less predictable, as the pension age and the number of years needed can change, but if you have been contracted out you stand to lose on your SP too, so it might be wise to plug those gaps.

It's all complicated, so it's a good idea to take advice from an expert.

Original poster
zeebra · 20/10/2025 23:30

Thelondonone · 20/10/2025 23:14

If you are out over 5 years I don’t think you keep the final salary part-you automatically move fully to career average. But this is not gospel!

I haven't had a break over 5 years. A break can make a difference in both a positive way and a negative way- this is why I am asking. It can work for you and against but I do not understand how it works. It seems complicated to work out the effect it has!

OP posts:
SiobahnRoy · 20/10/2025 23:31

OP I took early retirement this summer with a break in service. The personalised calculator on the TPS site was pretty accurate. If you’re in the Facebook group set up by Dave Fountain either he or one of the other admins will do a calculation for you. It meant my pension is roughly the same at 55 as it would have been at 60, because the final salary element is based on my salary from 2006, which is worth about £20,000 a year more than I was on when I stopped teaching - shows how eroded the salaries have become!

Original poster
zeebra · 20/10/2025 23:36

ShyMaryEllen · 20/10/2025 23:24

If you are on the final salary pension you will get 1/80 of your final salary for every year of contributions, so yes, breaks will impact on what you get.

Most people now are on a career average, or a mix of career average and final salary, but the same calculations apply. It is never a good idea to take a break in pension contributions unless you really have to, but I guess you know that.

I don't know about unrestricted wotsits, but you should be able to get a predicted pension at various ages on the website (ie how much you will get if you retire at 60, 65 or whatever age you hope to do it) based on your own circumstances. Their calculators are quite comprehensive. You can also buy back years, although it is expensive. Also, make sure that your State Pension is up to date without gaps that will mean you have fewer than 35 years' contributions at retirement. That is perhaps less predictable, as the pension age and the number of years needed can change, but if you have been contracted out you stand to lose on your SP too, so it might be wise to plug those gaps.

It's all complicated, so it's a good idea to take advice from an expert.

Thank you for replying. It is possible to have a break that has a positive effect due to the way the Final salary part is calculated I know this as much because I have read and done quite a lot of research. My question is really how this works in practice. I understand the career average. My question/query is not relevant to that part.

OP posts:
Original poster
zeebra · 20/10/2025 23:42

SiobahnRoy · 20/10/2025 23:31

OP I took early retirement this summer with a break in service. The personalised calculator on the TPS site was pretty accurate. If you’re in the Facebook group set up by Dave Fountain either he or one of the other admins will do a calculation for you. It meant my pension is roughly the same at 55 as it would have been at 60, because the final salary element is based on my salary from 2006, which is worth about £20,000 a year more than I was on when I stopped teaching - shows how eroded the salaries have become!

I am indeed in that group. Thank you for replying. I will admit to posting this because I couldn't get my head round the long explanation. I am less interested in how much I will get (although obviously that matters too) but with my breaks, I just want to understand how it is calculated because I am really confused by it!! Hence why I would like an idiots explanation!

OP posts:
Original poster
zeebra · 21/10/2025 00:10

SiobahnRoy · 20/10/2025 23:47

Edited

Thank you so much. That is exactly the kind of video I needed. I will look again tomorrow as I am tired so probably need to watch it again but that does explain it clearly. I don't know where you found that as I have watched a number of his but not that one!

OP posts:
New posts on this thread. Refresh page