Teachers Pension Explained | All you need to know | Final Salary & Career Average Earnings
Channel: Financial Madness
Date: 2021-11-15

Lets talk about the Teachers’ Pension. This is the retirement fund for those amazing individuals that dedicate their work to helping the countries youngster learn in the best possible environment. 

If you are an individual who is employed by a participating employer in a predominantly teaching role and you are aged between 16 – 75 then you are eligible for the enrolment in the Teachers Pension. You are now automatically enrolled into the pension scheme, but you do have the choice to opt out, however please do think seriously before doing so. We all want to retire and put our feet up at some point, so if you really need to think about how you will fund this. That’s why I always encourage individuals to really understand the benefits that you will be losing and even speaking to a professional before making a serious decision. 

The Teachers Pension Scheme is a defined benefits pension scheme that provides teachers with a guaranteed income for life when they retire. 
However, major changes were made to the scheme in April 2015 which meant there are different version of the schemes in play. So that means how much you can claim and when you can claim will depend on when you joined the scheme. 
One of the major changes is some the scheme moved from a final salary pension which means your pension income is generally determined by your last few years of service, to a career average arrangement which looks at your average salary throughout your entire working career

Chapter Information (Teacher Pension Explained):
0:00 Introduction
0:23 Who is eligible for the Teacher’s Pension?
1:26 What is the Teacher’s Pension Scheme?
4:45 How much do you contribute?
7:40 How much does your employer contribute?
9:38 When can you claim on your Pension?  
13:00 How much can you claim? (with an example)
17:09 Benefits for Teacher’s Pension

🔹 Financial Madness Teacher Pension Google Sheet: https://docs.google.com/spreadsheets/d/17jDKKiQv1rQqEfyw3L6bLhFjff1WRDURmfHLV-svWl0/edit?usp=sharing

🔹 Transition Dates: https://www.teacherspensions.co.uk/-/media/files/employer-documents/hosted-files/transition_tables_v3.ashx?rev=bc5420a83d984989ad7811afaea56183&hash=BF818FDB074D1AB2B5EA0A823A5814B6

🔹Which.com: https://www.which.co.uk/money/pensions-and-retirement/company-pensions/public-sector-pensions-explained/teachers-pensions-scheme-explained-az5106g8vnt7

🔹Teacher's Pension: https://www.teacherspensions.co.uk/-/media/documents/member/guides/planning-retirement/retirement-planning.ashx?rev=5228240a6c9e4dd7bf4f3040bb1df8ca&hash=238462B394E364C594BEB3B753BD65E0

DISCLAIMER - Any advice or (statements perceived to be advice) given in this video and any other videos on my channel are for information purposes only, and does not act as financial advice.  Your  are fully responsible for your financial decisions. If you are in need of Financial Advice, please seek out a professional advisor. If your are unsure on how to do this, feel free to reach out to me and I am more than happy to guide you.

#TeachersPension #WorkplacePension #Pension