NHS pension scheme (opting out and refund)

silkyuk9

I have been in the NHS superannuation pension scheme for around 9 or 10 years I have paid around £16,000 in contributions. With soaring bills etc i was wandering if it was possible to opt out of the scheme and get a refund. The refund would pay off all my debts and give me a little breathing space.

can anyone advise of this question.

i know how important it is to have a private pension but living is for now and ill worry about the rest when im 65.

seven-day-weekend

The NHS Pension Scheme is one of the best schemes there is and I think that after having come out of it, you won't be able to join again.

Even if you opt out you will not be able to get most, if any, of your money out, it will wait there accruing index-linked rises until you are of retirement age.

The only way you can get any money out is if you are over 55 (I think) you can withdraw 25%.

I think you will be better off turning the heating down and wearing another jumper.

I must add that I am not a pensions expert or professional.

silkyuk9

seven-day-weekend wrote: »

The NHS Pension Scheme is one of the best schemes there is and I think that after having come out of it, you won't be able to join again.

Even if you opt out you will not be able to get most, if any, of your money out, it will wait there accruing index-linked rises until you are of retirement age.

The only way you can get any money out is if you are over 55 (I think) you can withdraw 25%.

I think you will be better off turning the heating down and wearing another jumper.

I must add that I am not a pensions expert or professional.

thanks for that, i was sure you could only opt out before 2 years were up. im not 55 (39) so it looks like its going to stay put. I pay around £70 per month, and i know i should try to leave it alone, but its very tempting to take it, if that was possible and pay off my debts and breath easy again.

dunstonh

I pay around £70 per month

However, you are not actually paying £70pm. You are paying £56 due to tax relief. Most of the worth in your pension comes from the employer. Not what you pay.

CLAPTON

also you NI contributions will rise from 9.4% to 11% so you will get even less than £56

seven-day-weekend

silkyuk9 wrote: »

thanks for that, i was sure you could only opt out before 2 years were up. im not 55 (39) so it looks like its going to stay put. I pay around £70 per month, and i know i should try to leave it alone, but its very tempting to take it, if that was possible and pay off my debts and breath easy again.

Post your soa (Statement of Affairs - there is a post telling you how to do it) on the Debt-free Wannabee board and the tremendously knowledgeable people there will help you to come up with many money saving ideas.

melissa'smoney

i had pondered the same question...i enquired as it would solve my debt problems and "ill worry about the rest later"

however you can only freeze it you cannot withdraw so we have to stick with it

Scousebird_2

You cannot get a refund under the NHS Pension Service Rules because the limit it 2 years. You can only freeze and come out-but then your NI conts will rise. So stay as you are. You will be glad you did upon retirement. Civil Service/NHS pension schemes are amongst the best in the country, stay put and make the most of it. It may be hard now, but it could be mush harder for you and your family in retirement! At a time when you should be enjoying life, not worrying about meeting payments for bills or your next meal.

gratefulone

Hi. Am new to the forums and would like some advice please. Am in the NHS pension scheme and have just been informed by a colleague that I can transfer my previous pension into the NHS pension if I do so within a year of joining. Have looked at the paperwork and don't know if I'll be able to get the details from my personal pension provider (Prudential) in time for the 1 year deadline. The forms I need to fill in need to be sent to Prudential to ascertain whether or not my particular personal pension policy is transferrable and could take up to 3 months to be returned so I would miss the deadline. Is it a good idea to put all my pension 'eggs in one basket' so to speak or spread them across providers? Any guidance/advice would be much appreciated. Thanks.

tajobo

I have just joined the NHS Pension scheme. I was told I can opt up and have a full refund if I quit within 2 years of joining else my contribution is fixed till retired. Please how true is this?

mildred1978

tajobo wrote: »

I have just joined the NHS Pension scheme. I was told I can opt up and have a full refund if I quit within 2 years of joining else my contribution is fixed till retired. Please how true is this?

It's true.

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