Abacus for Teachers

Abacus Associates Financial Services Ltd, are a well established firm of Independent Financial Advisers specialising in personal financial planning for teachers and their families.

We also provide talks/seminars to staff in schools to provide education on the Teachers Pension Scheme and the effects of the Hutton Report. We have advisers based throughout England and Wales who are ready to help you with a personal financial planning meeting in your own home or at school. Our specialist teacher advisers have over 100 years experience in advising teachers so you can be assured of the best advice, tailored to your specific needs.

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Teachers Pensions

Everything you need to know about your pension
When can I retire?
The date you can retire depends upon a number of factors
School Talks
We have years of experience talking to teachers about their finances
Family Benefits
In the event of your death a pension is payable to your beneficiaries
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Teachers Pensions
Everything you need to know about your pension

Teachers Pensions

  1. You receive a guaranteed income in retirement through the Teachers’ Pension Scheme.
  2. You pay into your pension – and so does your employer.
  3. The size of your pension is calculated by adding together all your periods of service.
  4. It’s a Defined Benefit Scheme, registered with HM Revenue and Customs, based on your salary and service rather than investments – so there will be no nasty surprises when you come to claim your pension.
  5. Your pension will be a regular source of income when you retire – but you can also take some of it as a tax-free lump sum.
  6. If you’ve a family or other dependants, your pension can give them an income after you die.
  7. Your pension is index-linked, and is reviewed annually.
  8. If you’re sick you may be entitled to ill health benefits.
  9. To boost your pension benefits you may be able to make extra contributions.
  10. You may transfer other pension benefits within one year of joining the scheme.
What else should you know about your pension?

Your pension is designed so its value is protected against rising prices. You can even buy extra pension credits to boost your benefits, or in some cases transfer pension credit over from another scheme provided you do it within a year of joining the scheme.

You’ll still get the Basic State Pension on top of anything you get from the Teachers’ Pension Scheme.

So your pension is designed to take care of you when you retire. That doesn’t just mean when you reach normal retirement age. If you have to stop working through ill-health you may get your pension early. And should the unthinkable happen and you die before you retire, your family may be paid your pension benefits.

When can I retire?
The date you can retire depends upon a number of factors
When can I retire?

It all depends when you started your career. Significant changes to the Scheme were introduced on 1st April 2015. The first thing to do is establish what type of member you are. This link will help you

However, if you were a member of the Teachers’ Pension Scheme (or its equivalent in Scotland or Northern Ireland) before 1 January 2007 then things are different. Your normal pension age will be 60 – provided you haven’t had a break in service of more than five years.

But I had a break!

If you are out of pensionable employment for more than five years ending after 1 April 2015 it can have an impact on the benefits you can receive (we sometimes refer to this as a disqualifying break):

  • It may mean you enter a different arrangement to the one you left (i.e you may return to career average as opposed to the final salary arrangement). More information about the different arrangements is available in the active member guide.
  • If you had final salary and career average benefits when you left then the salary link between your final salary and career average benefits may be broken if you return to pensionable service after more than five years. That means when you take your benefits we will use the salaries at the time of the break to calculate your final salary benefits. If you were out of pensionable service for less than five years then we’ll use the salaries you’ve earned in career average.
  • If you return to pensionable service after more than five years then the benefits you earned before your break will continue to be index linked at the lower rate after your return to service. Any future benefits you earn will be index linked at the higher in service rate as long as you remain in service.

If your break is as a result of you working elsewhere in the Public Sector, then you might not lose the salary link, and you might return back to the final salary arrangement.

School Talks
We have years of experience talking to teachers about their finances
School Talks

Our team of Financial Advisers have many years of experience talking to teachers about their finances.

We offer a free presentation service to schools because we believe that all teachers should have the education they need regarding their pension scheme to allow them to make confident, informed decisions.

The talk usually last for 20-30 minutes and our advisers are flexible to fit around the school day. If you want the talk to be part of a training schedule on an INSET day or during an after-school meeting, we can be available at a time that suits you.

Some of the topics we cover include:
  • How the pension scheme works.
  • How the proposed pension reforms might affect your finances in retirement.
  • How to free up money now to save for the lifestyle you want in the future.
  • How to claim the tax relief you are entitled to.
  • How to check if you’re getting the best deal on existing plans.

Why not contact us today to book your talk or complete the contact form below and we’ll be in touch.

Family Benefits
In the event of your death a pension is payable to your beneficiaries
Family Benefits
 Yes, there will be a lump sum payment. A pension may also be paid to your dependants.
How much will the lump sum be?
If you are in career average and die in service, a death grant of three times your final full-time equivalent salary (at the date of your death) will be paid. If you’re in the final salary arrangement when you die then the death grant would be three times your final average salary.
Will a lump sum be paid if I die and I am out of service but haven’t retired?

Yes, a lump sum will be paid. If you die after leaving pensionable employment and have two or more years of pensionable service your death grant will depend on which pension arrangements you are in when you left service.

If you’re in the final salary arrangement it will be either:

Your retirement lump sum at your date of death or

  • Your pension contributions plus interest of 3%, if there is no adult pension payable
  • If you’re in the career average arrangement it will be:
  • Your accrued pension multiplied by 2.25 or your pension contributions plus interest of 3%, if there is no adult pension payable.

However, if you have less than two years pensionable employment, your beneficiaries will receive your pension contributions plus interest at 3%.

Will a lump sum be paid if I die after I have retired?
Yes, if you die within five years of retirement a lump sum will be paid. This will be five times your annual pension less any pension that’s been paid.
Who will receive the death grant?

Your spouse, civil partner or nominated partner will automatically receive the death grant unless you’ve nominated someone else to receive it. If you have nominated a person or persons they will receive the death grant. If you have no spouse, nominate partner or nominee, any payment will be issued to your estate.

Please note you’re not able to nominate a Trust or Charity to receive the death grant.

How do I  nominate someone?
You can complete a nomination via our website or you can ask your employer for a form. If you choose to nominate somebody to receive your death grant it’s important to keep it up to date. You can nominate more than one person, but if you want to do that you must tell Teachers’ Pensions what proportion of the death grant you want each person to receive.
Who can receive a survivors’ pension?
  • Your spouse
  • Your registered civil partner
  • Your partner provided you nominated them and they are still interdependent when you die
  • Your children, if they are under 23 and in education
  • If your child is incapacitated and was financially dependent on you.
How much will the pension be? 

If you’re in the final salary arrangement the long-term pension for an adult survivor is 1/160 of the final average salary for each year of your survivor benefits service.

If you’re in the career average arrangements the long term pension is the value of 37.5% of the pension you’ve earned up to your date of death. If you have benefits in both arrangements two calculations will made, one for each type of benefit and these will be paid together.

If you die in service your long term pension will be enhanced, but only on the pension arrangement you’re in when you die. If you have no more than two children then they will receive half of any adult’s pension. If you have more than two children, the adult’s pension is divided by the number of children.

What makes us different?

Certain professions have complex employment benefits which add that extra dimension.

We recognise that those in the teaching profession need the comfort of knowing they are dealing with advisers who possess expert knowledge on the Teachers’ Pension Scheme. For Teachers and their families, in making every decision – however large or small – we will always consider and calculate the effect and impact of any professional guidance and advice on your pension entitlement.

You can’t afford to get it wrong and that’s why we have a dedicated team of experts that understand your special arrangements.

Our Service for all clients

We believe every client should demand a transparent service with tangible results, vigilance when faced with financial lifetime threats, expect their interests to be at the heart of every financial advice decision we make, and to be part of a relationship built upon integrity.

That’s Revolutionary Thinking.

Want to talk an Abacus Adviser about your pension, or Financial Plan?

Contact Us

We would love to answer any questions or schedule a free consultation. Please call us or send us an email by completing  the form below.

If you would like to speak to an adviser in your local area, please leave a message below leaving your postcode, and we will have an adviser that covers your area contact you.

Please also indicate which services you are particularly interested in:

New Field

01432 343322

Head Office

Kemble House

36-39 Broad Street, Hereford HR4 9AR

01495 213958

Abertillery, Gwent

0121 5169191

Birmingham, West Midlands

01179 728780

Bristol, Avon

01594 800912

Cinderford, Gloucestershire

07815 784258

Derby, Derbyshire

01743 356661

Longden Common, Shropshire

01952 305025

Loughborough, Leicestershire

01354 662533

March, Cambridgeshire

01785 748281

Stafford, Staffordshire

01329 608684

Titchfield, Hampshire

01744 895989

Wigan, Lancashire

Abacus Associates Financial Services Limited is authorised and regulated by the Financial Conduct Authority. FCA Registration No: 230342. Abacus Associates Financial Services Limited is a wholly owned subsidiary of Tavistock Investments Plc

Registered in England Registered O­ffice: 1 Bracknell Beeches, Old Bracknell Lane, Bracknell  RG12 7BW, Company Number 05709133

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