When you are in teaching, you will always balance the commitments at home with your desire to do the best job at work. While being a teacher incurs many compromises on your family life, the Teacher Pension Scheme is one shining light in the darkness. There are so many ways that the scheme supports you and your family through the different stages of life.
The good news is that if you choose to take maternity, paternity, or adoption leave, the amount of pension you accrue is not impacted while you are still in pensionable service. If you pay money into the scheme via your employer, your contributions accrue as normal.
It is worth noting that this is only the case where you are earning half of your statutory pay at least. If you choose to extend the leave beyond the recognised period, your pension might be impacted. Equally, if this time out of teaching lasts more than five years, it can have a significant effect on your benefits.
There are also benefits for your family, should something happen to you while in service. The in-service death benefits provide a lump sum to your partner and potentially a pension benefit to your children (up until 23 if they stay in full-time education). This benefit varies with circumstances, and it is a good idea to seek independent advice.
Equally, while the definition of partner has been extended in recent legislation, it might be worth talking to someone about nominating an individual to receive benefits in the event of your death.
Investing in support
When you realise the significant benefits of your pension, it might become more apparent why you want to invest more in the scheme. You can buy flexibilities that allow you to increase the value of the lump sum and benefits your family might receive. Again, seeking independent advice here could help you make your decision.
The content in this article was correct on 31st January 2022. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on 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.