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Pension choice help.

Discussion in 'Retirement' started by Darthteacher, May 9, 2016.

  1. Darthteacher

    Darthteacher New commenter

    Hi guys, before becoming a teacher I worked on the shipyard docks. Now I'm teaching, I need to take up a pension....I've not paid into a pension for 20 years....so I obviously have some making up to do. Looking through all these private pensions is really confusing.....it appears to be complete minefield...:(

    If you have any time could you offer me some advice on a good pension for me to pay into. I'm coming up to 49 years old.

    1. Which pension do you recommend and why do you recommend that pension?

    2. Which pension schemes would you stay well away from?

    3. What pitfalls have you come across?

    Anyway, I know you are all very busy, I'm just banging my head against the wall trying to work things out, so thank you so much for any help received.
  2. Rott Weiler

    Rott Weiler Star commenter Forum guide

    Not only would it be a bad idea for you to take advice on specific pension investments from unqualified and anonymous strangers who know nothing about you, technically it wouldn't even be legal for us to give the advice. By law what you are asking can only be given that by a qualified 'authorised financial adviser'. No financial adviser would dream of giving you the advice you ask without first going thoroughly into your personal circumstances.

    The only advice I can give you is to get independent financial advice from a qualified adviser, one who can advise you across the whole range of investment options and isn't just selling one company's products.

    Out of interest, do you mean you haven't paid into the Teachers Pension Scheme for the last 20 years?
  3. Luvsskiing

    Luvsskiing Established commenter

    "technically it wouldn't even be legal for us to give the advice".

    ROFLOL! What a load of drivel and dramatically silly. Offering opinions on an anonymous forum will not break the law! No wonder teachers have a bad name for themselves for melodrama, exaggeration and pompous opinions!

    If you've just started teaching in the UK, you still would be hard-pressed to do any better than the Teacher's Pension Scheme, despite the recent changes. You can still buy added pension with them as well. That should be your first choice.

    At your age, you will need to be putting a huge percentage of your salary into it for extra pension and work for a few decades though to make up a decent pension. Your best bet would be make plans to climb the greasy pole and become an executive head on a few hundred thousand a year as quickly as you can! As for private pensions, you may be better off just saving into a low cost SIPP, ISA or Premium bonds, or a mixture of all three each month. Search for ISA versus SIPP.

    Sorry, have to go. I can hear the police with their dogs trying to break down the door ...
    emerald52 and eljefeb90 like this.
  4. Rott Weiler

    Rott Weiler Star commenter Forum guide

    It's reassuring to know that as long as I don't give my real name I can ignore the law with impunity and start a new career as an IFA.
    Jesmond12 likes this.
  5. Luvsskiing

    Luvsskiing Established commenter

    You're not an IFA. You are an anonymous poster on a public forum giving your opinion. :confused:
  6. welshskyline

    welshskyline New commenter

    Dearth, it would be useful to know......

    1. When you first started teaching.
    2. Have you decided to opt out of the Teachers Pension Scheme? (And, if so, why)
    3. Do you have any previous pension contributions? (You say that you stopped contributing 20 years ago, when you were 29 - if you join the TPS you might be able to transfer that over to the TPS).

    Best wishes,
    emerald52 likes this.
  7. emerald52

    emerald52 Star commenter

    Get in the teachers pension scheme. Much better than any private pension.
    Yoda- likes this.
  8. Yoda-

    Yoda- Lead commenter

  9. Alldone

    Alldone Senior commenter

    You could still have 20 or so years until retirement, so the teachers pension will still be substantial. Don't even think of opting out - take a private one as well if you can afford to, but on the whole they suck big time. I was in a similar situation to you - 15 years in Industry before teaching, with no pension. Fortunately I worked some years overseas so had enough money to buy a house. But here's the thing, I was persuaded by a private pension company to opt out of the teachers pension. Big mistake. Fortunately the Government stepped in and classed it as miss selling - bit like PPI stuff now. I had 9 years added back to the teachers pension scheme, plus the money I paid in (School paid in double) was kept in the private pension, so it was win win.

    A friend of mine works in a non teaching post at school. He has been working for 35 years now and pays in to a private pension. It will pay out less than a third what I am getting with my teaching one.
    emerald52 likes this.
  10. Jolly_Roger1

    Jolly_Roger1 Star commenter

    I knew a lab tech in a similar situation, who described his experience of finding private pensions as the choice between one 'dismal rip off' and another.
    Alldone likes this.

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