With the pandemic impacting every part of our lives, it is not surprising if you worry that it is affecting your pension.
It is essential to know from the beginning that your pension is protected by the Government. It is not a pension scheme that gathers value due to investment in the stock market. If you have money invested in another pension scheme that does involve investment risk, the pandemic may have caused some instability in your potential payout. In the Teachers’ Pension Scheme, you do not need to feel concerned in the same way.
Pension Regulator on COVID-19
However, the Pension Regulator is keen to warn pension scheme organisers to focus on critical risks. Two of these concerns are still relevant to the Teachers’ Pension Scheme. First, there is a greater risk of scams that the scheme leaders need to protect members from. Second, there is a need to offer sound advice to pension savers who may be considering forgoing the future for more security in the short term.
Finally, while the Teachers’ Pension Scheme is part of government policy and so not vulnerable to fluctuations in the market, the financial crisis could be a concern. The Government will need to start paying back some of the debt they are accruing now. Consequently, teachers need to consider how they can better secure their future, should the Government be compelled to make decisions that compromise a date or retirement or the benefits a member enjoys.
Seek advice on the impact of COVID-19
If you are worried about your finances in this time of COVID-19, then you should approach an independent financial adviser who can answer your questions.
The content in this article was correct on 16th November 2020. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on your Teachers’ Pension Scheme. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.
