Views on opting out of NHS pension temporarily

drumlegend · 2 Oct 2015 at 08:41

I've decided to just stay in. Doesn't seem worth it to me at all. I run the risk of not jumping back in. Thanks for the advice everyone

Lytton · 2 Oct 2015 at 08:55

drumlegend said:
I'm talking about a couple of months.

Make sure you do opt back in. First, i'd visit money saving expert to see if there is any other way you can slash your bills etc and claw some cash from other areas. The NHS pension scheme is easily the greatest deferred pay rise in the land and you should make as much use out of it as possible. Look at other avenues imho to begin with:

. Energy bills, paying monthly actually saves in this instance.
. Insurance policies, often paying anually is the cheaper option.
. Get a bank account that has some neat cashback and interest. Santander 123 or some of the 5% lower limit accounts are worth it.

For what I would gain from opting out of the NHS pension scheme for a couple of months, I could easily claw back just by shopping at Aldi and Lidl (which I do any way) for most of my essentials.

rossk26 · 2 Oct 2015 at 09:01

fadetoblack said:
You do realise the Nhs pension scheme is one of the best in the UK?

Don't think that's the case anymore

grumpysculler · 2 Oct 2015 at 13:24

rossk26 said:
Don't think that's the case anymore

It still is. It isn't quite the diamond-studded platinum scheme that is was before, but it is still a far better way for most people to save than anything else. There are a very small number of cases where it might be better not to join but they are few and far between (single, no dependents all the way to retirement and with a strong indication of an early death maybe).

In most cases it would be stupid to opt out and the little bit of extra cash in your pocket (after the tax man has taken his bit) is peanuts in comparison to the benefits that you are giving up. Don't forget to start paying life insurance premiums when you aren't in the pension scheme!

Lytton · 2 Oct 2015 at 13:28

Yup I'm positive that the nhs pension scheme trumps any private scheme that you can find on the market. Lower band staff might grumble at their successive years of pay cuts but the pension alone is a huge deferred pay rise. Anyone sensible with their long term planning should use it. One day it might not be quite so peachy, but at present it's still top gits.