Retirement planning crucial for teachers over 50

Government plans to cap state contributions to teachers’ pensions have made retirement planning more important than ever before.

For the proposals announced in December in the pre-Budget report raise the prospect that the benefits former teachers receive from their pensions will be reduced in the longer term.

While the scale of the cut in employer contributions is yet to be announced, teachers’ pensions are thought the most likely to be the first in the public sector to be revalued.

The profession is therefore likely to feel the impact of the new arrangements before other public sector employees.

The impact of the proposed changes means that a thorough examination of future finances has become even more important if teachers are to make the most of their retirement.

This is especially true for those over 50, who make up a large proportion of the general teacher population.

Advice on planning for life after the classroom is available from a number of sources but some experts are concerned that many teachers do not take the subject as seriously as it merits.

One of them is Gary Robertshaw, Course Manager at the Teachers’ Retirement Agency, which provides courses on retirement planning designed and delivered specifically for teachers looking ahead to life after work.

Gary says: “It’s important that teachers recognise the need to take responsibility for their retirement planning.”

“We have been running seminars to help teachers plan for retirement for over 15 years and we know that many teachers just aren’t as well prepared as they could be for what lies ahead.”

“The biggest impact on retirement is on their lifestyle. After working hard throughout their careers, teachers have earned the chance to enjoy retirement comfortably.”

“Some, however, risk a nasty surprise when they leave work because they haven’t given enough thought as to how to make their lump sums and pensions benefits work hard for them.”

The TRA will run 29 one day seminars nationally this Spring - from Newcastle upon Tyne down to Plymouth.

“We would advise teachers over 50 to take the opportunity to learn how they can be better off in retirement. The support we can provide not only helps teachers to make more of their money in retirement but also offers them greater peace of mind as they approach the end of their careers.” Gary says.

For more information or to book a place on a course, teachers should visit www.teachersretirementagency.co.uk or call 0845 644 2585 for further information.