NHS Pension worth it?

dunstonh

I'll be paid £22k for my full time role. So if someone wants to do the sums on that, it's be appreciated.

If you used a cash ISA to try and match the same benefits you would need to pay £1104 pm into the Cash ISA (if that was possible) to get the same benefit that you are paying £175pm

You say the pension take home will be reduced by £140. So, grossing that up, it makes a contribution of 9.54%. That seems very high for an NHS job. As mentioned higher up on this thread, typically your contribution is between 6 and 8.5%. Are you sure your figures are correct?

Is it possible that your gross contribution is £140 and your take home will be reduced by around £110?

So if I do the contributions, I'll be taking less home each month than my old job, but still enough to get by.

Did you have a pension in your old job?

And loads of you sound jealous that I may have actually worked my !!! off to get a role with a single benefit for once, instead of just lining the pockets of some private sector bloke who uses company funds to re-decorate his daughter's flat in sandbanks...

Jealous that you have such a good pension scheme and you are thinking of opting out.

So it's worth not opting out of the pension, right?

I take it that was a joke? you missed the smilie.

CLAPTON

wonderpupp wrote: »

OK, so I love the idea you guess I'll be paid £38k. Love it, really do. With £38k per year, my husband can stay home a feed the chickens.

I'll be paid £22k for my full time role. So if someone wants to do the sums on that, it's be appreciated. Not coming from a financial background, and having no parents / elders in my family left to ask about these things, I hoped there would be non-judgemental types here. (Oh, and no, I didn't get any inheritance, only some debt when they passed, so let's clear that up now)

So if I do the contributions, I'll be taking less home each month than my old job, but still enough to get by.

I've never been out of work, always paid my taxes, thanks, never claimed benefits / JSA, etc.

And loads of you sound jealous that I may have actually worked my !!! off to get a role with a single benefit for once, instead of just lining the pockets of some private sector bloke who uses company funds to re-decorate his daughter's flat in sandbanks...

So it's worth not opting out of the pension, right?

I'll need to make some assumption

your income is 22,000
you pay 6% pension of gross salary
you plan to retire at 65 year
you therefore work 35 year
you never get promoted
we will work in todays money to make everything easier to work out

so pension contributions are 6% of 22,000 = 1,320 per annum or 115 per month

if you stop paying into the pension scheme
then your tax increases by 20% of 1320 = 264pa
and your NI increases from 10.4% to 12% i.e. by 1.6%
i.e. (22,000 - 7224) x 1.6% = 236

so you net pay will only increase by 1,320 - 264 - 236 = 820 per annum
or about 68 per month

so lets say you saved that for 35 years
so into todays money that would be 68 x 12 x 35 =28,560 in total
so you could buy an indexed linked pension with OH benefits for about 3.5% i. e. you would have a yearly pension of 856 or £ 71 per month
(actually that's generaous as in practice 'real' interest rates are usually negative (i.e. less than inflation like at the moment)


or with the NHS pension
you would get 22,008 x 35/80 = 9,625 per annum or 802 per month plus a tax free lump sum of 28,875


so which is best a NHS pension of 9,625 pa plus lots of cash or a private pension of 856 pa

not to mention death in service benefits and childrens pension if you die before retirement

bendix

mysparrow wrote: »

Let's see 3rd largest employer in the world & believe it or not we're all paying tax! Quite a lot of contributions there then.

Happy to be 'deluded' waiting on my gold-plated pension...

OP sorry for the inevitable slanging turn that happens with all NHS pension questions! Sign up for the pension now it is definitely worth it (if only to annoy people who don't have one).

It's amazing you parade the fact that it's the 3rd largest employer in the world as if that is to its credit. It's a disgrace that the third largest employer in the world is in a country with a population which is around 5% of the countries in which the two bigger employers are in, India and China.

And then you have the gall to say that it's great, because you guys pay taxes.

Fool - if it wasn't for the fact OUR taxes pay your salaries, you wouldn't have an income to pay those taxes.

wonderpupp

Thanks for that,
CLAPTON, you're a star!:T

Let's just hope I outlive my folks then and make it to 65...
Though my husband is happy to accept any death in service benefits should I come-a cropper.

And for the people who use this as a slanging match; quit it, it makes you look foolish. More so than me asking in the first place, it seems.

bendix

Great. More debt for future generations to pay for. Thanks everyone.

geoffgeofftygeoff

Go for the bike.

geoffgeofftygeoff

Andy_L wrote: »

If you shop at, eg, Tescos you're paying for their company pension

...and which group of taxpayers are forced to pay this? None.

There we go.

geoffgeofftygeoff

paparossco wrote: »

From the Guardian;

"The NHS scheme has 1.3 million people paying into it, more than 400,000 deferred members and more than 600,000 people receiving an NHS pension. The average annual pension for retired NHS staff is around £7,000. The average for former women workers is around £5,000 with more than 50% receiving a pension of less than £3,500. Male NHS pensioners get an average of about £13,500 while more than half receive a pension of less than £6,500."

More explanation required.

If the average tenure is 1 year or 25 years how does that change your figures? Without the detailed information it's meaningless.

bendix

geoffgeofftygeoff wrote: »

More explanation required.

If the average tenure is 1 year or 25 years how does that change your figures? Without the detailed information it's meaningless.

It's not only meaningless, it's deliberately deceitful and cynical and designed to persuade the unthinking masses that the NHS pension isn't gold-plated, simply because average pay-outs are relatively low.

The amount of pay out is not the point; what matters is the amount of payout IN RELATION TO the amount the recipient paid in.

It's not rocket science, Guardian readers.

Old_Slaphead

bendix wrote: »

The amount of pay out is not the point; what matters is the amount of payout IN RELATION TO the amount the recipient paid in.

AND the length of service.

40 people doing a job for 1 year each only get 1/40th of the pension that 1 person gets for doing the same job for 40 years.

In case 1 (on an average salary of £25k) the average pension is £300 whereas in case 2 the average is £12500.