Views on opting out of NHS pension temporarily

drumlegend · 30 Sep 2015 at 12:22

So at the moment I am not living the must luxurious lifestyle. I'm usually left with about £100 disposable income and that can go in a heart beat.

Now I've just got a new job thankfully! But I need to sort things out that are going to cost a bit over the next few months.

What are peoples views on leaving the pension scheme for a few months. Is it possible to jump out and in? What are the disadvantages?

I don't want to make a decision that I will regret in the long run.

Basher · 30 Sep 2015 at 12:23

Confused by the title?

I don't think opting out of the pension scheme is a huge issue. Just re-enroll when you can afford to.

drumlegend · 30 Sep 2015 at 12:23

I should mention I'm 24 and been in it for a year and a half

Mrjobby · 30 Sep 2015 at 12:24

I work for the NHS and I had to do this when I started.

Not ideal but just make sure you eventually do go back in

drumlegend · 30 Sep 2015 at 12:25

Basher said:
Confused by the title?

I don't think opting out of the pension scheme is a huge issue. Just re-enroll when you can afford to.

Why are you confused sorry?

drumlegend · 30 Sep 2015 at 12:25

Mrjobby said:
I work for the NHS and I had to do this when I started.

Not ideal but just make sure you eventually do go back in

Is it easy to just jump back in?

Josh · 30 Sep 2015 at 12:26

drumlegend said:
Why are you confused sorry?

Because thread title mentions NHS, NHS isn't mentioned in thread.

Thread contains pension stuff, pension stuff isn't mentioned in Title.

Basher · 30 Sep 2015 at 12:29

JOSH86 said:
Because thread title mentions NHS, NHS isn't mentioned in thread.

Thread contains pension stuff, pension stuff isn't mentioned in Title.

Yeah, that.

drumlegend · 30 Sep 2015 at 12:31

JOSH86 said:
Because thread title mentions NHS, NHS isn't mentioned in thread.

Thread contains pension stuff, pension stuff isn't mentioned in Title.

What a dope I am! Sorry, I meant opting out of NHS pension

Dis86 · 30 Sep 2015 at 12:31

Thread title does not deliver!

drumlegend · 30 Sep 2015 at 12:33

Dis86 said:
Thread title does not deliver!

I know!

shadow_boxer · 30 Sep 2015 at 12:35

You may want to ring the NHS pension services. I believe you can temporarily opt out but you may lose some benefits if your out for too long. Something to do with continued service.

Thekwango · 30 Sep 2015 at 12:35

Dis86 said:
Thread title does not deliver!

yup, I had hopes the OP was going to self diagnose, with the possibility of him carrying out operations on himself

shame

Scam · 30 Sep 2015 at 12:35

I don't think opting out of a pension is going to save you a huge amount of money every month, is it? I'd stay with it and explore other avenues..

Semple · 30 Sep 2015 at 12:36

I was confused too!

I thought employers very soon have to do mandatory contributions anyway? Even if it's 1%.

You're still quite young, so your yearly contributions now are likely to be a lot less than they will be in say 10 years time.

drumlegend · 30 Sep 2015 at 12:41

It would be an extra £80, in my current position that's quite a lot

Hellsmk2 · 30 Sep 2015 at 12:41

If you'e working for the NHS, I'm assuming you'll be getting a final salary pension. If that's the case you would have to be totally and utterly mental to opt out of it, as they're leaps and bounds the best pension you can hope for.

drumlegend · 30 Sep 2015 at 12:43

Hellsmk2 said:
If you'e working for the NHS, I'm assuming you'll be getting a final salary pension. If that's the case you would have to be totally and utterly mental to opt out of it, as they're leaps and bounds the best pension you can hope for.

I'm talking about a couple of months.

ubern00b · 30 Sep 2015 at 12:56

Is that £80 pre or post tax? Pension comes out of pre-tax earnings so once taxed, it is sure to be less. If you have already thought about this, ignore me

Nutella33 · 30 Sep 2015 at 13:23

Hellsmk2 said:
If you'e working for the NHS, I'm assuming you'll be getting a final salary pension. If that's the case you would have to be totally and utterly mental to opt out of it, as they're leaps and bounds the best pension you can hope for.

very few people get those now. certainly not someone who has to consider dropping a pension buy in for more monthly flexibility.

OP should have some pension paperwork (or available from HR) due to starting the job which should explain the negatives of buying in a bit later.