How do teachers really feel about their finances?

That’s the question that Wesleyan Financial Services asked 500 school teachers and education leaders, along with a panel of industry experts. The findings highlighted a range of issues around pay, financial wellbeing and the Teachers’ Pension Scheme (TPS).

It’s perhaps unsurprising that the TPS is often intrinsic to a teacher’s wellbeing. While it’s still a key tool in attracting new teachers, the appeal of the TPS for many is dwindling – not least because of the high employee contributions, with some members contributing up to 12% of their salary.

So, what effect is this having on teachers’ financial wellbeing? And, if you’re contributing to the TPS, what can you do within the current boundaries to make the most of the scheme to support your circumstances?

What are the issues?

Our poll with 500 educators highlighted key issues around affordability and the complexity of the TPS. One in five (19%) were unclear about the benefits they would get in retirement.

In addition, 71% of those surveyed believe that the benefits of the TPS are not as generous as they used to be. Despite this, the scheme remains widely admired by other professions, not least because it provides a guaranteed, index-linked income in retirement.

Other general issues included changes around their role as educators, now needing to adapt to provide social, emotional and sometimes financial support for their pupils. Particularly when students attend school hungry or without books and stationery to actively take part in learning.

In addition:

• 27% said they feel negatively about their current financial wellbeing
• 20% said they save when they can, but they don’t have a long-term plan
• 22% said they had some financial goals but find it hard to stick to them
• One in six (15%) said they live pay cheque to pay cheque

What can you do to improve your finances?

There are a few things you can do to get your finances in the best place possible:

1. Get guidance

Financial guidance is not just for the super wealthy, it’s for everyone. A Specialist Financial Adviser who understands your profession can help you to build a financial plan that works for you.

2. Build in flexibility

As your circumstances change, so will your financial goals. So, it’s important to review your financial plan to ensure it’s always fit for purpose.

3. Stay up to date

Stay in the loop with changes to the scheme. Ensure you’re signed up to updates from the TPS.

Wesleyan Financial Services are experts in providing financial guidance to teachers and education leaders. If you’re looking for guidance tailored to you and your profession, they can help you to make a plan to reach your financial goals and to guide you through the complexities of your pension scheme. Charges may apply.