I remember as an NQT myself only having a vague awareness of what the Teachers’ Pension Scheme was. I knew that it was well regarded, and that money was being put into it every month, but beyond that I knew very little. As an ECT or an NQT your pension is probably the last thing on your mind at this stage of your career (unless you are a career changer), but there are things that I wish I had known at the start of my career about the Teachers’ Pension Scheme and I thought it would be good to share these with you.

Your Pension amount is protected.

The contributions you make (these are linked to what you earn) and the contributions from your employer all feed into your pension ‘pot’. However, unlike many other pension schemes that are tied to investments and other variable rates, the amount of pension you receive is defined by your career average salary. This means that you can clearly plan for your pension and have a really clear prediction of how much pension you are likely to receive.

You can see your Pension 24/7 online via MPO

The Teachers’ Pensions website allows you to access your personalised portal to view your Benefit Statements and help you to understand exactly what is happening with your pension. This service wasn’t available to me when I started teaching over 20 years ago, but I used to receive annual statements by post. Now I can regularly check on any changes to my pension easily and know exactly how much pension I would receive on my retirement! You can also use the site to access other benefits and services…

Your pension protects you and your loved ones from day 1.

You are automatically enrolled in the Teachers’ Pension Scheme and comes with additional benefits for your loved ones. A death in service grant will automatically pay out 3 times your full-time salary to your estate upon your death. Whilst this is not something we want to think about, knowing that your loved ones will be taken care of on top of knowing that there is a guaranteed income for you when you retire can provide real peace of mind. You can nominate one, or a number of beneficiaries of this grant online on your Teachers’ Pension portal.

If your circumstances change you can opt out.

Whilst I would hugely advocate for you to remain in the Teachers’ Pension Scheme, you can choose to opt out. This means that additional benefits, as well as the final pension, will not be available to you. But it does mean that if you are saving for your first house, the flexibility is there. Just remember that whilst you are not paying in, your employer will also not be making their contributions, and this will mean that your pension pot will not be as full when you do come to retire. (Equally if this is something you regret doing, you can ‘buy’ more pension at a later point – just keep in mind it will probably cost you more at that point). Opting out would always be a last resort for me!

I hope this blog has helped you begin to understand the benefits of your teacher’s pension. Now you’ve finished reading grab your National Insurance Number and head over to the Member Hub to get access to your membership area and find out about your pension.

Blog written by Mr T