sbf:

If you work till 70 you might get about £10k a year of a pension by the time they have got their way.

Not sure how fit you will be but even if you are active for another 5 years then thats £50k. After that just how much money will you need to get by, only you can answer this.

 If you just save into an ISA then you could save £100 per month to give you the same amount.

It is also worth remembering that, somebody who survives until 70 will have a life expectancy of 20 years or more. If you are healthy, you are likely tohave more than 5 "active" years, and will still need money for the rest of your lifetime. Don't expect a lot from the state.

The scheme is still a good deal. Unless you desparately need the cash now, you should stay with it.

sbf:

If you just save into an ISA then you could save £100 per month to give you the same amount.

£100pm saved into an ISA with a 5% return ( only possible if you use S&S ISA and not cash) would see £58,812 after 25 years. Buying an annuity on the same terms as the Teachers' Pension would give you £1764.36pa.

Notice that after all the changes we will be saving more than £200 per month in superann. So after the 25 year you are looking at £100k in todays money.

Still a bargain compared to the alternatives.

Its not so clear cut, you need to understand that the money you put into a pension is not yours you get a set amount every month.

That's the whole idea of a pension - to provide you with a monthly income on which to live.

Save the money in cash and its yours.

So how will you live?

If you invested in gold and oil over the past 25 year your £100k would probably be closer to £500k by the way.

If correct, that would give you a pension of £15,000pa much the same as you are getting.

If they dick about with the rules regarding lump sums then i will probably pull out the pesnion scheme as to me its more inportant having control of your money than the actual amount i have.

Not everyone wants to be poor in retirement.

Both my wife and i will have state pensions,of £600 per month each, our house will be paid off, will probably have a small amount of savings, just how much money do you really need when you retire?

Basic state pension is just over £100pw so nearer £400pm rather than £600pm.

At the end of the day you need to look at all the options yourself and make a choice, only you can do this.

Please stay in the scheme. You would be absolutley mad to leave.

jem16:

£100pm saved into an ISA with a 5% return ( only possible if you use S&S ISA and not cash) would see £58,812 after 25 years. Buying an annuity on the same terms as the Teachers' Pension would give you £1764.36pa.

Not sure why you dont get what i said, no where did i talk about buying an annuity. The whole point of saving your money in an ISA is to get access to it right away.

Also you have no idea what an annuity will cost in 30-40 years so its pointless speculating.

jem16:

 That's the whole idea of a pension - to provide you with a monthly income on which to live.

And there are many other ways of achieving this, yes a pension is one of them but not the only one.

jem16:

So how will you live?

Its not too difficult, you spend the money you have saved!

jem16:

If correct, that would give you a pension of £15,000pa much the same as you are getting.

Again you seem to think that an annuity is the only way forward, do you have shares in an annuity company?

If you got the returns that gold has over the past 30 years and had a £500k sum of money then that would last you 28 years at £18k a year. Assuming you retire at 70 then thats a decent pension till you are 97.... Cant see many 97 year olds needing that kind of money.

jem16:

Not everyone wants to be poor in retirement.

Funny i dont really fancy being poor now either, and for most people the most expensive time of their lives are between 30 and 50 when mortgages are high and you have children.

jem16:

Basic state pension is just over £100pw so nearer £400pm rather than £600pm.

Em not its not, as of April basic is £107.45, the gov guarentee £137.SERPS or S2P as it now is would raise it easily to £150 a week.

As i said at the end of the day you need to look at all the options yourself and make a choice, only you can do this.

I am still in the scheme and will remain, i am too far down the line to even consider any other alternative, but as things as slowly changing people need to look into the alternatives and make an informed choice.

Seems to me that jem16 has the blinkers on.

The 2007 deal was good, its slowly getting worse who knows what it might be in another 10 years. Everyone needs to make choice based on their own circumstances.