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Teachers Pension - UK

Discussion in 'Teaching abroad' started by Darthteacher, Jul 5, 2016.

  1. Helen-Back

    Helen-Back Occasional commenter

    if you take 4% a year from your well diversified index funds your money should also grow and you should be able to up your salary by inflation each year..
    ..And your original investment will still be there for your kids. Not so with a pension. I am typing on a phone with fat fingers or I would elaborate. Look up Andrew Hallams books on amazo, there are two. Read both.
     
  2. clovispoint

    clovispoint Occasional commenter

    Andrew Hallam has just published an updated version of Millionaire Teacher- well worth the reading the first two books

    https://andrewhallam.com/2016/12/millionaire-teacher-grow-financially-free-with-these-simple-rules/
     
  3. fsmc

    fsmc Occasional commenter

    Perhaps, but the difference between 4% and 6% is highly significant.

    No, you won't have any money for your kids to inherit, if that's important to you. That's the tradeoff for getting 6% a year.

    This discussion isn't really relevant though, since you can't buy into the TPS from abroad.
     
  4. the hippo

    the hippo Lead commenter Community helper

    I would have thought that it was more relevant to find somewhere cheap, but maybe I am a silly old hippo.
     
    Helen-Back likes this.
  5. clovispoint

    clovispoint Occasional commenter

    The TPS is a wonderful benefit as your employer makes the bulk of contributions but paying it yourself wouldn't make any sense. There is a big difference between a 4% and a 6 % return but the 4% return is considered the safe withdrawal rate for a lump sum you own. The bulk of the money is likely remain (no guarantees) upon your expiry and the amount you can withdraw grows too.

    The 6% income relies on you paying your contribution and the employer portion. You lose control and would need to live 17 years before you see an actual return on your £100,000.

    Hippo, got any suggestions for a cheap retirement location? I've just been looking at Malaysia.

    http://www.mm2h.gov.my/index.php/en/
     
    Helen-Back likes this.
  6. the hippo

    the hippo Lead commenter Community helper

    Will you get your UK pension in Malaysia?

    Regular readers of the pachyderm's ramblings will know that I am a great fan of Bulgaria, my adopted home. It is not so very far away from the UK, the weather is better and property is dirt cheap. But not everyone will like it, perhaps. Mrs Hippopotamus likes Bulgaria because she understands the lingo. Another advantage is that there are plenty of cheapie airlines flying between Sofia and the UK, so friends and family can visit us.
     
    Darthteacher likes this.
  7. Darthteacher

    Darthteacher New commenter

    It
    It is, but since I'm not currently working in the USA, I wanted to know if I could add to my teacher's pension.
     
  8. the hippo

    the hippo Lead commenter Community helper

    In order to add to your teacher's pension, you need to be teaching in the UK. Sorry about that, but them's the rules. Although you can buy up some "extra years" or rather some years when you did not contribute, this may not be such a good idea because it will be VERY expensive.
     
  9. Darthteacher

    Darthteacher New commenter

    It's not a simple business is it. Thank you for the two emails, I am still getting my head around them, you gave such great advice. I will email on Wednesday.
     
  10. the hippo

    the hippo Lead commenter Community helper

    One does one's best, Darthteacher.

    I think that it is very one-sided just to think about mazimizing your retirement income, whether it is 4% or 6% or whatever. Just as important, if not more important, is to think of ways of reducing your outgoings and living more economically when you have retired. There was quite a useful thread about this on the "Retirement" forum recently.
     

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