Sometimes, it’s easy to forget the sheer scale of the Teachers’ Pensions (TP) scheme for England and Wales. In the year 2023-24, 12,648 employers contributed to the scheme on behalf of 682,195 members (2022-23 figures).
(Quick word about timescales before you read on; some figures are for 2022-23 financial year and some for 2023-24. Confusing I know, but that’s the way the DoE published them in their report)
During 2022-23, just over 59,000 new people joined the scheme, whilst 73,599 people left it due to:
- Age
- Ill-health retirements
- Premature retirements
- Death
- Moving to deferred status
- Other reasons (transfers out, etc)
According to the stats, in 2023-24, the total number who took early retirement in 2023-24 were 2,686. However, over 55,000 became deferred members:
“A deferred member is defined as a member who has previously been in reckonable service, or who was in reckonable service but their employer has provided a withdrawal indicator. These members have yet to claim retirement benefits.”
Can you afford to leave teaching?
There’s the kicker: “yet to claim retirement benefits”. These teachers may have taken another job, or taken early retirement, but they haven’t needed to draw down (or started drawing down) on their TP yet.
In other words, they can afford to leave teaching/education work and not depend immediately on their TP.
That is great news and is at the very core of my discussions with teachers looking to leave the profession. Many think they cannot afford to retire, thinking they don’t have “enough” to do so. In fact, many are surprised that not only do they have enough, but they actually have plenty and in some cases, more than enough to lead the lifestyle they want in retirement.
TP stats on women retirees
It’s also not surprising to me that over half of the teachers who come to consult me about their pensions and retirement are women. According to the report:
- 71.6% of TP members as of 31 March 2023 were women
- 28.4% were men
The proportions are very similar amongst deferred members.
Women are far more likely to work part-time in the profession compared to men. This is reflected in the pensions currently in payment, where of £10,653million paid out:
- 231,000 men received between them £4,177million
- 445,000 women received £5,917million
As a result, more female teachers may be less certain of the value of their existing pension, and their potential to retire early.
How long can I enjoy my pension?
If those aged 65 as of March 2024 took their pensions, their life expectancy would be:
- Males 23.0 years
- Females 25.1 years
So, taking all that into consideration, have you got sufficient pension, savings, assets and income to cover the lifestyle you want for the next 25 years?
That’s the question I can help teachers answer and have done for over a decade. It’s not just about adding years to life, retirement is adding life to years. Planning a fulfilling, enjoyable and purposeful retirement requires looking at the core elements of retirement.
Together, we’ll work through these core elements to create your Retirement Vision. This includes:
- Identity & Purpose: Who are you now? What new meaning and purpose will you find?
- Family & Relationships: How retirement will impact those closest to you.
- Social Network: How to maintain connections beyond work?
- Mental Stimulation & Wellbeing: Keeping your brain active.
- Physical Wellbeing: Staying fit and healthy.
- Profession: Exploring ongoing professional engagement or starting a new venture.
- Volunteering/Giving Back: Supporting causes you care about.
- Leisure: Enjoying travel, hobbies, and fun activities.
How I can help teachers
Understanding your Teachers’ Pension isn’t easy, and I say that as someone who looks at the TP website and data a lot! So, I offer a one-off, personalised Teachers’ Pension Review , which takes a deep dive into your particular pension to discover:
- What you have now
- What you’ll have at retirement
- Recent changes that might affect you
- How you might improve your pension
- And more
Or you can choose my 1 to 1, highly personalised Life Beyond Teaching retirement coaching, unique to Panthera LIFE. Life Beyond Teaching gets you retirement-ready by mapping your transition from classroom to retirement in detail.
The good news is that both the Review and Life Beyond Teaching start with a free initial 30 mins Discovery call to see if retiring early from teaching is right for you. Just click the button below to book online or:
