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NHS pension scheme (opting out and refund)

2»

Comments

  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    mildred1978 wrote: »
    It's true.

    .............

    But you wil have tax and NI taken out, and you will give up the best pension available anywhere to you (there is a better one for MPs and ministers but well..........)

    You'll be bettter off to leave it.
  • tajobo
    tajobo Posts: 4 Newbie
    mildred1978 wrote: »
    It's true.

    .............
    Thanks, I am particularly concerned about the 2 year period and the full refund
  • mildred1978
    mildred1978 Posts: 3,367 Forumite
    tajobo wrote: »
    Thanks, I am particularly concerned about the 2 year period and the full refund

    In what way concerned?
    Science adjusts its views based on what's observed.
    Faith is the denial of observation, so that belief can be preserved.
    :A Tim Minchin :A
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I am concerned that you will P*ss your retirement money away but then again it is your choice. Except when the govt try to stop you for your own good lol.
  • tajobo
    tajobo Posts: 4 Newbie
    mildred1978 wrote: »
    In what way concerned?
    I guessed you’ve calmed my fear in your respond. I just want to be sure that I can opt out within 2 years and have a full refund whatever the deductions are.
  • mildred1978
    mildred1978 Posts: 3,367 Forumite
    tajobo wrote: »
    I guessed you’ve calmed my fear in your respond. I just want to be sure that I can opt out within 2 years and have a full refund whatever the deductions are.

    It will be the contributions less Tax and NI (so you'll get about 70% back).
    Science adjusts its views based on what's observed.
    Faith is the denial of observation, so that belief can be preserved.
    :A Tim Minchin :A
  • jem16
    jem16 Posts: 19,766 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    tajobo wrote: »
    I guessed you’ve calmed my fear in your respond. I just want to be sure that I can opt out within 2 years and have a full refund whatever the deductions are.

    Why would you want to opt out of one of the best pension schemes around?
  • dunstonh
    dunstonh Posts: 120,610 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 10 November 2011 at 9:15PM
    I guessed you’ve calmed my fear in your respond. I just want to be sure that I can opt out within 2 years and have a full refund whatever the deductions are.

    No you cant.

    You will not get the employer benefit (that is lost). You will also have to repay the tax and NI on your contributions before they are refunded. So, you will not get a full refund.

    a general guide is that the pension value is worth (as a transfer value) around 8 to 10 times more than the refund. In most cases, only a fool would take the refund.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • tajobo
    tajobo Posts: 4 Newbie
    edited 10 November 2011 at 8:52PM
    jem16 wrote: »
    Why would you want to opt out of one of the best pension schemes around?
    I just want to be sure that I can opt out if I want. I may not after all, I think I'm truly won over. Thanks
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    mildred1978 wrote: »
    It will be the contributions less Tax and NI (so you'll get about 70% back).

    Very very poor decision as you don't lose anything by leaving it, just by taking it back. You will lose most of it as you will lose the employers contribs and the whole FS or Avg salary for the rest of your life bit.

    So you will lose way more than 30% of what those contribs could have gotten you.
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