Client Portal Independent financial planning advice for teachers

Teachers Logo
  • Home
  • Advice
  • About Us
  • Seminars
  • News
  • Downloads
  • Contact
Email
Home/News/Teachers Pension/Leaving teaching: consequences on your pension
loading...

Leaving teaching: consequences on your pension

01/04/2020 Racheal Smith

A man working on a calculator

If the news is to be believed the general sense of burnout that you could be feeling is likely shared by many.  The number of people leaving the profession is on the rise, as they seek an alternative career away from the classroom.  While we can mourn the loss of talent, the essential message here is that you might stop work in your school too.  Consequently, at some point, you may need to consider what happens to your pension if you leave the teaching profession.

What happens to your pension?

When you leave teaching, you have choices of what you can do with your pension.  You can choose to leave your benefits in the Teacher Pensions’ Scheme.  You will then be known as a deferred member.  Alternatively, if you start a career in another sector with a similar pension scheme, you can transfer your benefits across.  However, if you have less than two years’ pensionable service and you have not previously taken your benefits, you can request repayment.  If you ask for this payment, you will receive everything held in the scheme, with National Insurance contributions deducted.

Becoming a deferred member

Choosing to leave your money in the scheme and to become a deferred member does not mean you lose out.  If you have served two years’ pensionable service, you will qualify for benefits when you retire.  Plus, if you then become an active member again, your contributions will continue to rise.

When you retire, the amount you have accrued in any periods of pensionable service will then be available as pension benefits.  You will qualify for a lump sum and a pension.  However, it will be much reduced in comparison to what it would be if you had continued service.

Less than two years’ contributions?

If you have tried teaching and know it is not for you, then you may leave before two years’ contributions have been paid.  If this is you, then you should request a repayment once you have been out of service for more than a month.  You will not be able to restore this service in the future if you choose to return to teaching.

The content in this article was correct on 10th March 2020. 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.

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 Pension

Tagged in: Pension benefits



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.