Can't afford a pension

23rd September 2005 at 01:00
Q: Is it possible to opt out of the teachers' pension scheme? It might be irresponsible to think about, but I am heavily in debt following my PGCE year and simply cannot afford to lose up to pound;100 of my pay every month. Could I rejoin the scheme at a later date if I wanted to?

A: You are being caught by the problems of compound interest. The earlier you start paying into a pension scheme, the more it is worth in the longer term when you come to draw it out. However, you have more immediate debts that need repaying. The first thing to do is to review your lifestyle to see whether there is any way you can both repay your debt and pay into the pension scheme. Some short-term pain will be worth the long-term gain. If you are teaching full-time, you can't opt out of the pension scheme even if you wanted to.

Subscribe to get access to the content on this page.

If you are already a Tes/ Tes Scotland subscriber please log in with your username or email address to get full access to our back issues, CPD library and membership plus page.

Not a subscriber? Find out more about our subscription offers.
Subscribe now
Existing subscriber?
Enter subscription number

Comments

The guide by your side – ensuring you are always up to date with the latest in education.

Get Tes magazine online and delivered to your door. Stay up to date with the latest research, teacher innovation and insight, plus classroom tips and techniques with a Tes magazine subscription.
With a Tes magazine subscription you get exclusive access to our CPD library. Including our New Teachers’ special for NQTS, Ed Tech, How to Get a Job, Trip Planner, Ed Biz Special and all Tes back issues.

Subscribe now