Now is the time when most student teachers have found their role for September. They will go from a learner to a teacher in one big leap and get paid for the effort. Most of these new recruits will not have entered teaching with an illusion of a big payday. However, there is more on offer than a salary. Your employers will also be making contributions to your pension.
A package of benefits
Your pension is a part of the package you are offered when you enter employment with a school. Except for some independent schools, schools are required to auto-enrol you in the Teacher Pension Scheme. While this means you make contributions out of your salary, your school will be paying in, too, on your behalf. Consequently, some of your pay for working in a school is paid now as salary and some is paid into your pension for the future.
This pension is a generous scheme, and it is worth making the most of what is on offer. It will pay well in the long run. It is good to book an appointment with an independent advisor in the first couple of months. You may want to make decisions about flexibilities in the early part of your career, which won’t be available long term.
Remember that any investment made into this pension scheme is similar to a long-term savings scheme but with much better returns than you might expect. It is well worth looking into this benefit of your new career.
“A pension is a long-term contract that is not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age).”
The content in this article was correct on May 29th 2022. 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.