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Should I Put Money Into Nhs Pension

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Comments

  • emg
    emg Posts: 1,390 Forumite
    Part of the Furniture Combo Breaker
    dunstonh wrote:
    There is no retirement fund at the end that pays the pension. The pension is paid for by taxpayers at that time. What the employer pays is irrelevant to the individual.

    The public sector pensions account for around 20% of the Govts payout on pensions.


    So what is the current money collected each month being used for instead? My understanding was that current contributions pay towards current pension payouts.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    My understanding was that current contributions pay towards current pension payouts.


    That's correct.Any shortfall is topped up by the taxpayer.It's an unfunded "pay as you go" scheme, the same as the state pension.
    Trying to keep it simple...;)
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