A teaching career offers a range of benefits, including a competitive salary, opportunities for career progression, and a support package for early career teachers. It also comes with a secure pension that will help you save for your future. Here are six things that you need to know about the Teachers’ Pension Scheme.
1. All teachers are automatically enrolled
You will be enrolled automatically in the Teachers’ Pension Scheme from the start of your career and each time you start a new contract. The pension is yours, so you can add to it throughout your career, even when you move teaching jobs. You also have the flexibility to opt out of the scheme if you wish to. It’s important to take independent financial advice when making any decisions regarding your pension.
2. Your employer and the government contribute too
Each time you are paid, you contribute part of your salary to your pension. In addition, your employer also puts a percentage of your salary into the Scheme. As the Scheme is registered with HM Revenue and Customs, your contributions are tax-free, so you are able to keep more of your income.
We have a superb pension package.
Katie, Assistant Principal
3. Your contributions are based on what you earn
A percentage of your pay is automatically placed into your pension pot each month. If your salary increases, this percentage will increase too. If you wish to, you can also opt to pay extra contributions.
Find out more about the benefits of the Teachers’ Pension Scheme.
4. The Scheme is very secure
The Teachers’ Pension Scheme is one of only eight schemes backed by the government. This means that it is not reliant on your money being invested elsewhere.
5. The Scheme is flexible
If you wish to, you can convert part of your pension early as a tax-free lump sum. If you were to become ill during your career, you could apply for early ill-health retirement. You can also manage your pension online in a way that suits you.
6. Your family will be protected
If you were to die while actively paying into your pension, a nominated beneficiary would receive a death grant. After two years of paying in to your pension, a nominated beneficiary would also receive a pension after you die.
To find out more about the Teachers’ Pension Scheme, visit the Teachers’ Pensions website now.