It might not make sense immediately to contact an independent financial advisor as a teacher. Your salary is fixed to national levels, and your pension payments are taken automatically. You are aware of your retirement date, as the Teacher Pension Scheme advise you of this annually and an estimate of how much you will receive.
Equally, teaching, for the most part, is a vocation. Teachers tend to be less motivated by money than most other careers and are more interested in the outcomes for young people.
Why bother with an independent financial advisor? Here we explore some of the reasons to undertake some thorough financial planning with an expert who can offer opinions.
Making the most of your benefits
The first reason to seek advice from an independent financial advisor is the possibility of additional benefits on offer in your pension. Your pension is a long term savings plan for your retirement and an addition to your salary, offering further remuneration. You can increase the power of this plan using Flexibilities. Knowing what flexibilities you can purchase and when is something an independent financial advisor can help you with.
Planning for retirement
The Teacher Pension Scheme can only offer estimates of your final benefits, and the calculations are complex and are buffeted by changing details and context. Consequently, if you genuinely want to understand if you can afford to retire, an independent advisor is your best option.
Making benefits work for you
There are questions you need to ask. For instance, will I be living in pension poverty when I retire? How can I make use of the lump sum? Can I work in another setting? Can I return to the classroom? These questions are the bread and butter of an independent advisor.
It is worth remembering at this point that the Teacher Pension Scheme are not allowed to advise you on what decision is best for you; they can only give you information to inform your decision. Therefore, the ultimate reason to reach out to an independent financial advisor is to get the guidance you might need to make the best decisions for you.
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.