Is your teachers’ pension good? A fair question, you do pay a lot of contributions each month. The great news is that the teachers’ pension, even the less generous career average scheme, is one of the better work-based pensions. One of the bonuses offered to serving teachers, like a carrot, is that you will be able to retire comfortably when the time comes. You can visit My Pension Online to see your annual allowance and your lump-sum payment options.
Once you have worked out that living with presumably no mortgage, no costs for getting to and from work, no children at home and generally lower living costs, you may discover your teachers’ pension will allow you to be more than comfortable.
Then, it’s time to consider how do you make the most of your teachers’ pension?
Is your teachers’ pension good? Well, it could allow you to travel the world when you leave the classroom. Remember all those postcards from retired colleagues on the notice board in September. This could be you!
You could even buy a motor home with your lump sum and never plan to be at home again, ever.
Do up your home
If DIY and creativity are your things, then you could spend your time making your house into your ideal home. You will suddenly have time for all those projects that you have been putting off for the marking.
Alternatively, you could upscale or downscale to the city or the country and live a different lifestyle.
Start a business
A favourite of many teachers is to start a consultancy or writing business. Your career experience gives you a highly valued and unique skillset. You could turn a small cottage industry into a full-time enterprise – though you will need to be careful with your pension and seek advice as to whether your income will affect your pension payments. The same if you choose to get a part-time job. Working in a less pressurised context might be just the social opportunity you need to wean yourself from a busy professional life.
Go back to the classroom
You may wonder who would do this. Who would go back to teaching when they have retired? The answer is that many people do. They miss the interaction with young people and the sense of community that comes from being in a school. You do need to seek advice about your pension, should you choose to return to pensionable service.
Alternatively, you could volunteer your time working as a teacher for those who wouldn’t usually access your skills. You might feel it is essential to give back a little: becoming a governor, for instance.
An important takeaway
Remember, whatever you choose to do, you should still live within your means – and seeking advice on how to do this will help you plan better for this retirement period. It is a good idea to think about how to spend your retirement before it catches up with you. This can be a valuable period of your life, and it is well worth making it something special with careful planning.
The content in this article was correct on 19th July 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on pensions for teachers and non-teachers. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.