lledlledlled
Registered User
- Messages
- 419
Hi,
My wife began teaching full-time in 2012. She was 29 years old then, now 34. She has little interest in financial affairs/pensions etc so I am trying to get my head around her entitlements at retirement. Finding it a bit of a minefield tbh!
Assuming my wife continues to teach until age 65, I figure she will be 4 years short of the full 40 years contributions. How will this affect her pension? As a post-2011 teacher, as well as getting fleeced in salary compared to her colleagues (that's another story!), I understand her pension will be calculated as a percentage of her average career salary, and not her final salary. Finding it difficult to estimate ballpark figures though, even assuming she lives to approx 85 years.
Really interested in hearing opinions on whether it would be worth our while buying the four years Notional Service? I've read strong opinions for and against on AAM, although none of the threads appear to apply to post-2011 teachers.
Again, finding it difficult to calculate ballpark figures for the cost of buying back the four years. Are there advantages to buying this now or can we wait until closer to her retirement? Lump sum purchase versus increments taken from salary?
Would we be better off looking at AVC or PRSA options? I've read some pretty negative opinions on Cornmarket.
We have recently put over a decade's worth of savings into buying our family home so spare cash is not plentiful. I'm just afraid of making a little mistake now which may have large consequences for our retirement, especially given the impending pensions timebomb. I'd hate to think we could make massive sacrifices now in an effort to (responsibly) provide for our future, only for a future government to raid our pensions to pay for future state pensions.
Regarding my own pension, I am in private sector employment and once I am with my current employer for 12 months (next February), I will begin paying into a pension for the first time, aged 36. Company will pay 10% of my salary and I will pay 5% apparently! Following AAM advice, hoping to pay mortgage down to a reasonable level before looking at paying more into pension. As noted above, I'm fearful of a future raid on pensions. At least mortgage overpayments offer a guaranteed return.
Any and all comments greatly appreciated. Apologies for the long post.
My wife began teaching full-time in 2012. She was 29 years old then, now 34. She has little interest in financial affairs/pensions etc so I am trying to get my head around her entitlements at retirement. Finding it a bit of a minefield tbh!
Assuming my wife continues to teach until age 65, I figure she will be 4 years short of the full 40 years contributions. How will this affect her pension? As a post-2011 teacher, as well as getting fleeced in salary compared to her colleagues (that's another story!), I understand her pension will be calculated as a percentage of her average career salary, and not her final salary. Finding it difficult to estimate ballpark figures though, even assuming she lives to approx 85 years.
Really interested in hearing opinions on whether it would be worth our while buying the four years Notional Service? I've read strong opinions for and against on AAM, although none of the threads appear to apply to post-2011 teachers.
Again, finding it difficult to calculate ballpark figures for the cost of buying back the four years. Are there advantages to buying this now or can we wait until closer to her retirement? Lump sum purchase versus increments taken from salary?
Would we be better off looking at AVC or PRSA options? I've read some pretty negative opinions on Cornmarket.
We have recently put over a decade's worth of savings into buying our family home so spare cash is not plentiful. I'm just afraid of making a little mistake now which may have large consequences for our retirement, especially given the impending pensions timebomb. I'd hate to think we could make massive sacrifices now in an effort to (responsibly) provide for our future, only for a future government to raid our pensions to pay for future state pensions.
Regarding my own pension, I am in private sector employment and once I am with my current employer for 12 months (next February), I will begin paying into a pension for the first time, aged 36. Company will pay 10% of my salary and I will pay 5% apparently! Following AAM advice, hoping to pay mortgage down to a reasonable level before looking at paying more into pension. As noted above, I'm fearful of a future raid on pensions. At least mortgage overpayments offer a guaranteed return.
Any and all comments greatly appreciated. Apologies for the long post.