Views on opting out of NHS pension temporarily

shadow_boxer said:
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.
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This, it all adds up.

Definitely just get in touch with pension services and see if they can put a pause on monthly payments for an agreed amount of time.
 
The main thing you need to considering is whether or not you WILL opt back in? It will be too easy to just not bother.

I'm assuming it's about a £30 contribution form yourself?
 
Get a 0% on purchases credit card (but don't spend any more money than you would had you just opted out of the pension!) to use in the interim and then pay off. Employer contributions and pre-tax is very valuable.
 
When I started (~3 years ago) they accidentally put me on a pension band above.

9.3% when you've budgeted for 7.1% felt like a kick in the teeth, but I contacted them and all was sorted. My advice is, stick with the pension if you physically can. You don't want to opt out for 1 year... Which becomes 3 years... Then 5... and find yourself gutted when it comes to retirement age.

Speak to NHS Pensions or your payroll department, then take the absolute minimum of time off the scheme if you feel there's no other option.
 
Burnsy2023 said:
Credit cards are designed for this sort of use case. Why is it terrible advice?
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They're not designed for this sort of use. For someone who is already struggling with cashflow why would it be a good idea to essentially take out a loan? That's like rule #1 of money management! :confused: What happens when the 0% runs out and he is still in the same position and can't pay it back? Why do people think that if they don't have money now, they magically will do later on down the line when it comes to the crunch?

I'm all for using credit cards and have put big purchases on 0% cards to spread the cost over time, but it just is not a good thing to advise here.
 
Yes you can jump in/out. Speak to your payroll team and they'll be able To advise you on what the impact will be. As people say, if you opt out you won't get the full total of your monthly contribution back, remember to reduce it by 25%.

Only being in for 1.5yrs will probably be on the 2008 scheme unless you signed over to the 2015 scheme. From memory the main difference between the 1995 and 2008 scheme is the build up of contributions and pension age. 1995 you did 40/80ths (I.e you need 40yrs service to get the full 50% pension pot)and could retire at 60, 2008 you did 30/60ths and could retire after 65. So 1995 you built up your pension pot slower but could retire earlier.

The 2015 changes to average salary contribution at 1/54th and national pension age.
 
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.
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I'm wondering the same for my police pension. I've now been forced onto the new average earnings pension. However I have 9 years' worth of final salary. There will be another review in five years' time and I'm thinking of punching out now and using the money to invest in property.
 
The NHS pension scheme has just changed this April to the new 2015 scheme. If you've been in the old system for 14 of those months your contributions will likely be co-oped into the new system. you need to speak to NHS pensions regarding your options, holidays with less than 2 years service I think come with a full refund of contributions, and that's you out.
Rejoining starts the process again, but actual pension pots are now accrued on an annual April to April basis and go towards an average salary system, they work at a pot equivalent to 1/54 of your wage, and afaik stack each year at CPI+1.5%.
 
For a sake of about £80 a month can't you just get a couple of nights in your local pub/ restaurant? Any night you work means you won't spend money going out so double bonus :)
 
Who cares?

By the time we're 68, the pensionable age will have increased to 78.

By the time we're 78, most of us will be dead.

They're counting on us paying into the system, then for most of us to be dead before we're eligible for hand-outs.
 
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