Retrospective additional pension, £69k for £8.5k pa. sensecheck
46 and working as a teacher.
I came across the opportunity of buying additional pension after the transitional protections have been offered and being able to stay in the final salary pension scheme for longer.
To cut the story short, I can pay £69,000 (spread over 24 months) for additional index linked pension at 60 of £8468
I won’t get tax relief as it is retrospective
I hope to RE in early 50s, but doing this would pretty much clear out my ISAs, so I’d need to start building them up to bridge to 60 (or at least until 55 when I can get early access to teachers pension at a reduced rate of about 3% a year).
I’ve run the number and it seems a good deal, I suppose I’m wondering
Does it sound worth it?
Am I missing something else to consider?
I’m more focused on FI than RE and could go a bit later as a result of this but it seems the best financial option.
Even after missing market growth of 4-5% while money is locked up, I still end up better off with the pension.
Hat tip to David fountain YouTube that showcase this. https://m.youtube.com/@dfountain?ra=m