If you are a member of the Teachers’ Pension Scheme (TPS), as part of your pension planning it's important to be aware of the annual allowance – the maximum amount you can build up in your pension each year without facing a tax charge. For most people this is currently £60,000.

While £60,000 is a generous amount of tax-free pension saving, it is possible for long-standing members of the TPS to exceed these limits if their salary is high or they have a significant pay rise. 

TPS will alert you if it believes that you have exceeded these limits in relation to the TPS. Some members will have also received a special one-off notification of this in relation to the McCloud judgment by being sent a Remedial Pension Saving Statement, which we explain in more detail in our advice for members on this topic.

NAHT is unable to provide tax guidance to members in relation to the annual allowance – as a trade union, this is something which falls outside of our remit, so you may require independent financial advice in relation to this complex area.

You may already have a trusted financial advisor who can help or have a recommendation from a family member. Alternatively, you may find the information available at https://www.moneyhelper.org.uk/en/getting-help-and-advice/financial-advisers/choosing-a-financial-adviser useful if you’re looking for an IFA. 

For general financial advice related to your pension or financial advice in general, NAHT partners with Wesleyan Financial Services to offer specialist financial advice to our members and their families. Its specialist financial advisors work specifically with education professionals and so understand the unique challenges faced by NAHT members. Find out more about the financial services that Wesleyan is able to provide.

See NAHT's series of pension fact sheets for members.