To Freedom...

kirstypark

thanks for the thoughts, guys. the health board just have a long waiting list as consultant retired this year and new one not appointed yet. At least we got the option of going to another health board, but she is in a lot of pain with it and i am worried it is growing and causing more damage inside.

Was looking at my pension online yesterday and thinking i had better get moving on some additionalsavings for that. I have the option to buy some extra, as it is nhs pension i am a bit worried about the long term future of it. I only started it when i was 30 so dont have as much service as i thought :eek:

BlueMoo

Pensions are a nightmare - I had a meeting last year with a Pension Adviser and (ignoring any investment profit) I would need to save £500pm :eek: :eek: :eek: to retire on 12k a year (pretax). And, I've got at least 50 years until retirement.

With projected investment, I need to put away £200 pm. Can not afford that right now, but hopefully if I get the payrise I'm after next review, I can get it to about £175.

Not sure about NHS pension to be honest as never worked for the public sector, but surely that would be safer than a private pension option?

kirstypark

had a look at the pensions board and nhs pension does seem a good deal which is why i was thinking of putting more away in it. But for now will keep hitting the mortgage.

Wish payday would hurry up - only got about 20 quid in the bank. But did go shopping at weekend and got £55 of food for 2.38 after using nectar points and all the spare pennies from our piggy bank, as well as some bargains.:j

Workmate off sick again so more overtime this week - problem is i have a bladder infection and feeling yuk myself. Looking after patients when i am running to pee and feeling bit rubbish is not good. 3rd lot of antibiotics in a few weeks - i need a break!!

LauraJo

I'm impressed Blue Moo and KP that you are organised with your pensions! I have no idea what mine is going to do. I just pay in as much as possible each month (because we are on something called salary sacrifice apparently its doesn't make us worse off - I have no idea what this means!!)
Hope you feeling better soon KP - its horrible working when you are feeling rubbish

BlueMoo

Salary sacrifice basically means you forfeit a bit of your salary to get a benefit (whether it be car/child care vouchers/pensions), but in return (as it is taken out before the income is taxed), you are taxed less overall as your salary is lower - especially helpfully if you are only a couple of K over a tax band.
e.g MrJones earns 32k, tax band is 30k, so MrJ agrees to forgo 2.1k a month in return for 2.1k worth of childcare vouchers. MrJ now 'earns' 29.9k which means he is below the tax band rate, and because his 2.1k has not been taxed - it is worth more.

Hope that makes sense.

Anyhow, pensions are obviously a good way to save as you do not pay tax on the amount deducted.

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Sorry to hear you're not well Kirsty. Get well soon!

LauraJo

Oh cool, that makes sense, thanks! Seems like its the right thing to do then!! Anything to not give any more money to the tax man

kirstypark

thanks for that bluemoo. Laura - congrats on the new job! :j

KolaKube

Kirsty I'm in the NHS pension scheme - I'm pretty sure you can buy years if desired? Its a good scheme, but I think you're wise to also look at other sources of retirement income too +/- minimising outgoings (no mortgage or rent would be a nice one!).

My parents are close to retirement and have been looking at ways to minimise their outgoings, replaced their car, sorting their house out etc. They've put in a woodburner for alternative heating recently so they aren't reliant on one source too xx

KolaKube

ps I'm intrigued by this kitchen, would love to see a pic

kirstypark

ok i will try and work out how to post a pic. you might need shades..I had not given much thought to pension either until my dad retired and he is very comfortable with his - made me realise i want to be in the same position. i am lucky as no longer work for nhs but a private employer who agreed to carry on my contrabution as part of my package. It sounds a good scheme - but who knows what will happen in the next 20 years? might not even be a nhs around then?

Anyway husband got paid today - i have put most of the excess from his earning in our flex account to get some interest and rather than overpaying it gonna keep it until after christmas so we spend if we want to. So no big overpayment yet - did tidy up £145 into the mortgage.