Number of teachers turbocharging pensions soars after tax changes and pay rises

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   # Abolition of the lifetime allowance by the previous government has sparked teachers into action, say experts

   More teachers are opting to forgo pay in order to build up even [better pensions](https://inews.co.uk/topic/pensions?srsltid=AfmBOopn6xcQQUXomjteAqsJOl7YldVs7sjAF2OOEeblkNHhYqI_NVli?ico=in-line_link), after the lifetime allowance was scrapped.

   Teachers chose to opt in to a scheme known as “faster accrual” more than 2,000 times between the start of April and the end of September, according to data released to **i** by the Department for Education.

   It follows the abolition of the pension lifetime allowance – the rule that imposed a tax charge on those who had built up large retirement incomes.

   Faster accrual allows teachers to increase the percentage of their income that is added to their pension each year.

   Over the past five years, there have only been around 1,300 faster accrual opt-ins per year.

   The cost varies from teacher to teacher, but calculations for **i** by Wesleyan Financial Services suggest that for a 40-year-old teacher earning £45,000, a move to the fastest accrual option possible would cost £4,077 from their salary, but would mean an extra pension income of £210.53 per year.

   As more people live longer, having extra income guaranteed every year will be appealing, even it does mean losing a chunk from their current wage packet.

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