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Can teacher also have a personal pension?

Retirement | Pension Rules Helpful? 2

Asked by campsieboy, submitted 04 January 2012.

Open Quote My daughter opened a private pension with Aegon 4 years ago when a student. She pays £2880 per annum with the Government paying £720. She has now joined the Teacher`s Pension scheme in England - has a full time permanent teaching job.
My question :

Can she continue contributing to the Aegon pension and still receive the £720 from the Govt as well as be a member of the Teachers scheme?.
End Quote

Answered by Justin on 30 August 2012

Yes, she can. She's allowed to contribute into a personal pension (such as the Aegon pension she has) as well as an occupational pension and enjoy contribution tax relief on both.

The only proviso is that tax relief will only be given on contributions (including those made by an employer) up to her earnings or £50,000 a year, whichever is lower.

As an alternative to paying more money into the Aegon pension she could consider buying extra teacher's pension instead as this avoids investment risk (which effectively falls on taxpayers who ultimately pay for the scheme), but then there's no guarantee teacher's pension benefits/rules won't change in future or that she'll send up better off versus the Aegon pension.

Please note this answer does not constitute a recommendation or financial advice and should not be relied upon when making specific investment or other financial decisions. You should always undertake your own research into whether a product or service is appropriate for your needs and, if necessary, use a qualified professional adviser.

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