NHS Pension (Sorry)
Discussion
I'm looking for some advice from those with an NHS Pension, or those that understand it well.
From what I understand, the net cost of the pension is currently c.£165 per month (after tax savings).
I am wondering now, especially with the changes due (it will keep increasing and will change to average salary), whether my money may be better elsewhere.
I'm not entirely sure of the benefits/negatives of sticking with it or stopping it, so I'd really appreciate some advice.
From what I understand, the net cost of the pension is currently c.£165 per month (after tax savings).
I am wondering now, especially with the changes due (it will keep increasing and will change to average salary), whether my money may be better elsewhere.
I'm not entirely sure of the benefits/negatives of sticking with it or stopping it, so I'd really appreciate some advice.
Rollin said:
If you are looking to put the money into a different pension, I doubt you will find one that's better.
If you think you can invest the £165 and achieve better returns (property,shares etc.) then have a go
The other option is to spend the money and hope you don't live beyond retirement age.
I'm in my forties and I am under no illusion that the age I get my NHS pension will be before 75.
That I think is my concern. I'm 28, and we can't say for sure that there will even be any money there when I get to 75, 80, 85, or whenever it will be.If you think you can invest the £165 and achieve better returns (property,shares etc.) then have a go
The other option is to spend the money and hope you don't live beyond retirement age.
I'm in my forties and I am under no illusion that the age I get my NHS pension will be before 75.
I'm thinking £165 overpayment into the mortgage each month could make more sense than paying into a pension. I'm not sure though, as I've never really thought about it before. When I joined the NHS, I was told 'you'd be a fool to leave it', so I never have. Basically... Is this still the case?
sidicks said:
Pulse said:
But... In the event I sit on, let's just say, £30,000 for most of my career, then jump to £60,000 (extreme, but just as an example), this means I'll actually get a lot less, doesn't it?
Is that likely??Maybe you'll only get 2 to 2.5 times what your own contributions would have funded - isn't that still pretty amazing?!
It's quite likely that I will continue to go up, which means over my career I will be getting less; but I see what you're both saying - I'll stick with it! I'm only 28, and have paid in for 4 years now.
sidicks said:
p1doc said:
also be aware that roughly every year you retire early you lose 5%overall pension
Th time for accumulation of contributions is less and the pension will be paid for longer, so 5% reduction seems generous!!Deva Link said:
anonymous said:
[redacted]
That's a bit harsh on the new employer isn't it - shouldn't the NHS pick up the tab for the enhancement if the right to it already existed?Anyway the employer will begin to save as it takes on new staff at a more typical private sector pension.
It's the single most restrictive area for private sector bidders for NHS contracts (where TUPE implications are apparent).
Deva Link said:
Pulse said:
It's the single most restrictive area for private sector bidders for NHS contracts (where TUPE implications are apparent).
It's a sad indictment of private sector pensions that that's the case.Gassing Station | Finance | Top of Page | What's New | My Stuff