As the New Year comes around, we are all still considering the same stresses. The pandemic has made us all feel a little uncertain about what the future might bring, and it makes us all wonder how we can insure ourselves against change and challenges.
Why your pension is a benefit
Our pension might feel like an additional cost coming out of our salary, but it is more of a benefit pension fund but an ongoing benefit throughout retirement.
Making the most of this benefit
Rather than a drain on our finances, our pension is an investment in the future. As we contribute, so does our employer. Then, each year, a percentage amount is added to your pension fund so that it grows a little more again.
As we move through our careers, our contributions to our pension offer us a sense of financial security in our retirement that would otherwise be missing. We not only receive a lump sum, which can be up to 25% of your accrued
Changing how we perceive our pension can make it seem more commonsensical to use to its fullest. Each year, each teacher within the Teachers’ Pension Scheme is allocated a flexibility allowance. This allowance is £7100 in 2022 for those in the Career Average arrangement and £6900 for those in the Final Salary arrangement.
You can choose to contribute more throughout the rest of your career, buy additional years, or buy chunks of pension. To learn more about these schemes, contact your independent financial advisor. You could do more to secure your future through your pension than you ever imagined.
The content in this article was correct on 11th December 2021. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on your teachers’ pension scheme, as well as financial matters in general. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.