Would you opt out of an NHS Contributory pension

[Pferdestarke]

My wife has been an NHS employee for the last four years and by default has been making contributions of circa £150 a month to pay in to her pension. They keep changing the goal posts on retirement age, contribution level, lump sum percentage and age at which she could draw it.

A possible alternative is to take her £150 a month and buy shares with it instead every month throughout her working life. I would ensure she spread her holding over different risk profiles and would look to invest in forward-thinking blue chip and emerging technology companies. As her salary increases so would the contribution.

Is this really daft considering they also pay in a percentage and that she is also getting tax relief on contributions? At least we could draw on funds and be flexible if we managed it ourselves and built up a healthy holding over the years.

Any advice (sensible) appreciated.

[Pulse]

I think I would far rather be a bit more sensible and try to work out if that money would be better placed in the mortgage instead. I think you'll struggle to find something equal to that of the NHS pension in terms of return, to be honest.

[jj333]

Pferdestarke said:

At least we could draw on funds and be flexible if we managed it ourselves

In a way one of the benefits of the scheme is that it remains untouchable. Tax relief is a biggie imo, the scheme is still a good one

[TFP]

In a nutshell, it would be more than daft.

DON'T DO IT.

Even subject to Government meddling, its substantially better than your alternatives.

[98elise]

Also, if she should become unemployed at any time, the shares would be considered as savings.

[Pferdestarke]

Thanks for the replies so far. Anyone else?

[thegman]

Once you take into account the tax relief and the employer contribution I think you will find the return is better than most other investments.