Teachers opting out of pensions as financial pressures increase

What’s happening?

Nearly 60,000 teachers have opted out of the Teachers’ Pension Scheme (TPS) over the six years to February 2026.

Freedom of Information data obtained by Wesleyan shows that 58,058 teachers withdrew from the TPS between 2020 and February 2026, which is the equivalent of more than 8% of the current teaching workforce.

Opt-outs increased from 6,788 in 2020 to 12,630 in 2025 (up around 86%) peaking at 13,219 in 2024, which is almost double 2020 levels.

Women account for nearly two-thirds (64%) of all opt-outs, 37,514 – compared to 20,544 men.

Why are teachers leaving the scheme?

Almost six in ten (59%) of those who left the scheme did so for personal financial reasons – a decision that could leave them significantly worse off in retirement.

Most withdrawals happen in September which suggests that many opt out as soon as the academic year begins and contributions start to leave their bank account.

Steve Renfrew, Head of Education at Wesleyan Financial Services explains "What's particularly alarming is the September pattern, with brand new and younger teachers opting out right when it matters most. Every year of contributions lost in your twenties is worth exponentially more than those made later. If the profession can't offer long-term financial resilience, we'll lose talented people to careers where they can actually secure their futures."

What should you do if you’re considering leaving?

We understand that a lot of teachers are dealing with mounting financial pressures, but leaving the TPS is a decision that should not be taken lightly. Not least because of the impact it may have on your future retirement plans.

Oonagh Morrison, Regional Manager at Wesleyan Financial Services outlines the implications and what you should consider before leaving the TPS.

If you’re thinking about leaving the scheme or you want to review your retirement plans, it may be worth speaking to an education specialist from Wesleyan Financial Services.

They can help you to review your options and come to a decision based on your own needs and circumstances. Charges may apply.