Client Portal Independent financial planning advice for teachers

Teachers Logo
  • Home
  • Advice
  • About Us
  • Seminars
  • News
  • Downloads
  • Contact
Email
Home/News/Teachers AVCs/Shaping your future pension
loading...

Shaping your future pension

09/07/2020 Racheal Smith

man offers pile of money across table

We all want a bright future when we retire. The best way to make sure you can enjoy your life after work is to save towards your pension. Each month you and your employer will be contributing to your fund based on a percentage of your salary. Although this will offer you a relatively comfortable life after retirement, it might not provide that additional comfort that will help you to holiday lots or enjoy an expensive hobby.

Adding to your pension

Some people purchase property and hope this will provide the breathing space to enjoy retirement. Others invest additional income, hoping for a significant return that will add to the fund. Another option available to teachers, as part of the Teachers’ Pension Scheme, is to pay more into your fund as you earn.

There are several opportunities available, including:

  • Additional pension, which can be bought in multiples of £250 per annum
  • Buy out, which means you can buy out the actuarial reduction if you choose to retire early.
  • Faster accrual, which allows you to pay higher contributions each month
  • Additional voluntary contributions (AVCs), which is a separate scheme that allows you to pay extra each month.

Why would you increase your pension?

You might worry that paying more now will leave you strapped each month. Therefore, you might rightly think additional contributions is not the right move for you at the moment. However, if you have some disposable income, paying into your pension does offer a more significant return than holding money in a bank account – for the most part. You will increase your benefits both in terms of the lump sum and the allowance you receive on retirement.

However, it is essential to speak to an independent financial advisor. There may be tax implications on your choices, and there might be more suitable ways for you to prepare for your future. An advisor will also talk you through each of the schemes, exploring the best options for you.

The content in this article was correct on 1st June 2020. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on the different types of retirement available with the Teachers’ Pension Scheme. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.

Share this article:

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
Posted under: Teachers AVCs, Teachers Pension

Tagged in: Teacher AVCs



Make an enquiry

Please complete and send the short contact form below and we will come back to you as soon as possible.

    First Name

    Telephone

    Email

    Enter code captcha

    Message
    ifa logo
    Apple App Store Google Play Store
    • Site Map
    • Cookies
    • Legal
    • Privacy
    • Careers
    • Facebook
    • Google
    • Twitter
    • LinkedIn

    Teachers Financial Planning Limited is an appointed representative of LJ Financial Planning Limited which is authorised and regulated by the Financial Conduct Authority. Financial Services Authority firm registration number 552276. Content on this website is provided for information purposes only and should not be considered advice. The information contained within this website is subject to the United Kingdom regulatory regime and is therefore primarily targeted to consumers in the United Kingdom. Registered in England & Wales 07612896. Registered Office: St James Business Centre, Wilderspool Causeway, Warrington, WA4 6PS. Calls to 08452 69 69 90 cost 5p [or 5p per minute] plus your phone company's access charge.

    © 2011-2020 Teachers Financial Planning Limited.
    Website designed and developed by Carpe Diem
    This website uses cookies to improve performance: Find out more.