Maximum Per Year £60k (previously £40k)
“£60,000 – you must be JOKING…no way am I putting that much into my pension.” You may be shocked!
A teacher’s contribution to their pension is around 10% (twice the normal private pension rate)..so somewhere in the range £3k to £5k per year for a classroom teacher.
School Contributions
Employers have to also put in 28.6% (that’s nearly TEN times the minimum private pension scheme employer’s have to pay).
In addition, defined benefit schemes, such as the TPS have their ‘value’ calculated differently, so you may be surprised at just how much of your £60k Annual Allowance you have used.
Before 2024/25 the allowance was £40k and because of the way inflation is added and not accounted for until the following year quite a few teachers exceeded the £40k allowance in 2023 when inflation of 10.1% was added.
