- Nearly 60,000 teachers have opted out of the Teachers’ Pension Scheme over six years to February 2026
- The latest Department of Education data shows that annual opt-outs have nearly doubled since 2020, with women accounting for nearly two-thirds of withdrawals
- A third (33%) of all opt-outs are teachers aged 21-30, with September seeing consistent annual spikes suggesting newly qualifies teaches are abandoning pensions in their first months.
Nearly 60,000 teachers have opted out of the Teachers’ Pension Scheme (TPS) since 2020, with annual opt-outs nearly doubling over the period, new Department for Education data reveals.
Freedom of Information data obtained by Wesleyan shows that 58,058 teachers withdrew from the TPS between 2020 and February 2026 – equivalent to more than 8% of the current teaching workforce.
Annual opt-outs increased from 6,788 in 2020 to 12,630 in 2025, with 2024 marking a peak of 13,219 withdrawals – a 95% increase over the period.
Almost six in ten (59%) teachers who opted out cited personal financial reasons for abandoning their pension contributions, which is a decision that could leave them significantly worse off in retirement.
Women account for nearly two-thirds (64%) of all opt-outs, 37,514 compared to 20,544 men, despite teaching being a female-dominated profession.
Early-career exodus
September marks both the start of the school year and a consistent spike in opt-outs.
Combined with the data revealing that teachers aged 21-30, the typical age for newly qualified teachers, account for a third (33%) of all withdrawals (19,449 over the period), the data suggests early-career teachers are abandoning pensions within their first months in the classroom.
Steve Renfrew, Head of Education at Wesleyan Financial Services, said: “This data should set alarm bells ringing. When teachers are forced to choose between paying rent and saving for retirement, something has gone fundamentally wrong.
“The TPS is one of the best pension schemes in the country – inflation-proofed and government-guaranteed. Nearly 60,000 walking away from it means 60,000 people making choices today that could devastate their financial security in retirement.
“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.”
Leaving the profession entirely
The analysis also found that teachers opting out because they were leaving the profession more than doubled from 134 in 2020 to 291 in 2025.
Steve Renfrew added: “The rise in teachers walking away from both their pensions and their careers should be a wake-up call.
“It’s clear that the TPS itself isn’t the problem. Teachers are leaving education entirely because they can’t make it work financially in the short or long term. Making teaching ‘attractive’ isn’t enough, it needs to be financially viable. If teachers can’t afford to build a financially resilient future in the profession, we risk them building one elsewhere.”
