13,112 teachers quit pension scheme in 12 months

The number of teachers opting out of the Teachers’ Pension Scheme has climbed 14% to 13,112 during the past 12 months, data collected by the Department for Education has revealed. The main cause for withdrawing was financial pressures, with seven out of 10 teachers (69%) citing that reason. The number withdrawing from the Teachers’ Pension Scheme to join a private scheme climbed nearly 150%. The DfE data was secured through an FOI request by financial mutual Wesleyan. The data showed that in the 12 months to May, 13,112 teachers opted out of the scheme, an increase of more than 1,600% year-on-year. The single biggest reason for leaving the scheme was affordability. In the 12 months to May, 9,010 teachers withdrew from the scheme citing personal finance reasons – 69% of total withdrawals - and 7% more than in the previous 12-month period. A further 1,240 teachers withdrew because they were joining a private pension scheme – 147% more than the same period the year before. Separate FOI data secured by Wesleyan found that, as of June, more than a third (34%) of all independent schools in England and Wales have withdrawn, or plan to withdraw, from the Teachers’ Pension Scheme amid rising employer contribution rates. More schools left the pension scheme in the first six months of 2024 than in the whole of 2023. Darren Mills, specialist financial adviser at Wesleyan Financial Services, said: “While circumstances may mean that more teachers are struggling to keep contributing, leaving the teachers’ pension scheme should be a last resort. “The TPS is inflation-proofed, guaranteed by the UK government and provides retirement income tied directly to a teacher’s salary. Leaving the scheme can therefore have a significant impact on a teacher’s retirement plans.” He said the rise in teachers switching to private pension schemes likely reflects the fact that increasing numbers of private schools are leaving the TPS amid rising employer contribution rates. He said: “It’s essential that anyone looking at alternative options – by choice, or by necessity – understands exactly what the implications could be for them.” The analysis also found that the number of teachers opting out because they said they were not planning to stay in the UK rose by 33%, year-on-year, to 307. Mr Mills added: “The fact that a third more teachers are reporting that they’re leaving the TPS because of plans to leave the country should raise alarm bells. “That’s more than 300 more vacant places in classrooms that will need to be filled, at a time when there’s already a recruitment crisis in education. “The new government has said that it plans to make teacher recruitment a priority and we need to see a focus on making a career in teaching an attractive option to support recruitment and retention.” Source: Wesleyan FOI request to the Department for Education, received 24 June. Note – data covers all teachers, across the private and public education sectors.

13,112 teachers quit pension scheme in 12 months

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