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Considering my pension options - any advice?

Discussion in 'Supply teaching' started by littlelebowski, Jan 16, 2011.

  1. littlelebowski

    littlelebowski New commenter

    Hi Magic Surf Bus,
    I talked to a friend who is a financial adviser and he said that from this information, he feels it would be better to buy more TPA pension and not go for a stakeholder pension.
    I'm sure someone else will have more well-informed advice!
  2. I think buying in more years of TP is a costly business and may not be worth it. I think you pay in both your usual 6% and the school's 14% (round numbers), and this is due to rise.
    Stakeholder, AVCs, you get tax relief on your investment, very dependent on the market.
  3. oldsomeman

    oldsomeman Star commenter

    the thing to do it approach TPA and they wil send you a detailed estimate of the money you might earn
    I was 60 when i decided to take my pension as i realised on supply i would never add to it...and couldnt voluntary due to there never being any money spare

    you might be supprised what hey offer,,and the cash amount could be interesting.......even with 25% f fyo could have an income and stil do supply if you want..I do!
  4. magic surf bus

    magic surf bus Star commenter

    Thanks for all the advice and pointers folks. The TPA used to send out an annual illustration of pension benefits but I haven't seen one for ages. Under the current rules (average salary from best 3 years out of the last 10) I reckon my pension will peak at 57 as I had a TLR before I left full-time. Trouble is, will the government change the rules? I can't claim state pension until 66 now. I'm still on the payroll of two LEAs for the odd occasions I get paid to scale so maybe there's a back door into paying more TPA contributions, but it seem very expensive. Looks like it's time to contact them when I get a supply-free day, and to start enquiring about Stakeholder options.
  5. phatsals

    phatsals Senior commenter

    You can log into TPA for an Online Forecast which is pretty up to date. You need to get some advice about potentially taking your pension early on the basis of your TLR, it may be to your advantage to take all or part of it sooner. Your union are the best people to ask.
    The extra years are purchased in £250 blocks and are thousands to buy eg around £5k when you are closer to returement age.
  6. magic surf bus

    magic surf bus Star commenter

    Thanks, I've been doing exactly that today. Interestingly I've made occasional contributions whilst on Supply but these haven't yet shown up as reckonable service in the summary so that needs following up.

    I've been doing some sums as well - buying in an extra £250 a year on TPS will cost me just over £4000 as a lump sum. The same amount could only be gained by investing the £4000 until age 60 at 4.2% - if such an investment exists these days!

    It all goes to show why it's sensible to stay in the TPS if you can.
  7. phatsals

    phatsals Senior commenter

    Too true. It may be that your recent supply hasn't yet been sent to TPS. It tends to be sent around the Jan of the following year though sometimes it can be longer. If your supply work started after April last year it won't show up until next Jan/Feb. The good thing is that it does eventuallyshow up and if there is a problem you can contact the LEA with payslips/P60s in hand and they will send TPS a letter to update service.
  8. <h5>Like some have said it may be worth your while to take it now. My pension is small , granted- but as an agency supply i had no opportunity to continue paying in. I phoned theTP service and they advised me to take it as I would only be losing 3% of the full amount ( approx 2 years away from retirement anyway). </h5>So gaining approx 16 ( months) x monthly payment - would take me 8 yrs of pension from age 60 to regain the lost 3% -so for me a no brainer.
    It's called an "actuarily reduced pension" and no limits on any paid work (you just pay income tax on any earnings including pension -above your personal allowance).
    TP require a service record from LA so make sure you have your P60s etc -just to check. It took my LA about 6 weeks to send off the paperwork. this may take longer in these times.
    I dont trust the tories on pensions (nor on anything else) . I have no regrets and am thankful I did it. You just need to be absolutely sure of your figures and all your options -don't think you can change your mind once you've taken it!
    Good Luck whatever you decide.

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