NHS pension... should I stay or should I go??

jennyc85

As the title states really..

I've employed by the NHS for about 18 months & pay about £160 per month into my pension..

Is this really the best idea?? I think i'm right in saying that up until 2 years you are free to get your money back & opt out of the pension?

Now whilst I know it is probably a good idea to have some sort of pension plan.. what happens if the NHS collapses in the future?? Or if I change my career?? Or if it all becomes privatised??

Am I better off getting my money back before its too late and putting it somewhere else?

I've heard from some people that the NHS pension isn't too shabby & I should definitely continue with it.. but the future of the NHS seems so uncertain.?

Thoughts please?!

p.s. I am 27.

bigadaj

Don't do anything. The return on your money is huge, it is effectively government backed. Ad the government, or more accurately taxpayers, are probably contributing several times your funds, to give you a pension in the future that would be extremely costly to buy on the open market.

I think you need to do some reading on pensions and investments and the benefits you are currently getting might become obvious to you.

atush

what exactly do you do in the NHS? Do you not have time to read newspapers (broadsheet) or TV? As a research Biologist I am science based (like say nurses and doctors) but maybe you aren't? And my degree meant I had to be well versed in math (maybe you aren't- we don't know what you do?). But the basic math will be the key for you.

I really really think even if the NHS went down (no chance as any govt who did that would not be in govt) the pension would still be paid. Up to the date of the closure of the NHS (if that would happen- not)

There is NOTHING you can do with your 160 that will be worth as much (or probably half as much).

And pretty much all the changes I have seen to the NHS pension, have been changes going forwards. They do not affect pensions being taken, nor those who are working but built up benefits already to this date.

So, pay in. and rest easy.

kidmugsy

jennyc85 wrote: »

Thoughts please?!

p.s. I am 27.

On behalf of taxpayers throughout the land I should like to compliment you for your noble gesture of leaving the burdensomely expensive NHS pension scheme. Good for you; if only millions of other government employees would do the same, there might be some chance of rescuing the public finances. A hundred thousand thanks.

jamesd

Stay in the pension. You can't get anything even close to the benefits it provides anywhere else other than in it or similar government-related pensions.

People needing healthcare isn't going to end. Even if you end up not being in the NHS at some point the pension amount will just continue to increase with inflation until you reach retirement age.

redbuzzard

It sounds to me as if you might be swayed by the prospect of getting £3,000 back?

If you need another vote - don't do it.

[STRIKE]Three [/STRIKE][STRIKE]four[/STRIKE]five reasons

- it will be a good deal anyway, far better than you could do on your own

- they will have to put more in than you -that's free money, but only if you stay in the scheme.

- a bit broad brush, but at your age, if you delay pension saving for 5 years, it will knock 1/3 off your pension.

- you get tax relief on your payments, so at basic rate your £160 is costing you £128

- chances are that when you retire, the tax free lump sum alone will pretty well cover the net cost of your contributions, plus interest bearing in mind that you are only funding part of the full cost.

If you're still wavering, I can think of some more...:)

jennyc85

atush wrote: »

what exactly do you do in the NHS? Do you not have time to read newspapers (broadsheet) or TV? As a research Biologist I am science based (like say nurses and doctors) but maybe you aren't? And my degree meant I had to be well versed in math (maybe you aren't- we don't know what you do?). But the basic math will be the key for you.

I really really think even if the NHS went down (no chance as any govt who did that would not be in govt) the pension would still be paid. Up to the date of the closure of the NHS (if that would happen- not)

There is NOTHING you can do with your 160 that will be worth as much (or probably half as much).

And pretty much all the changes I have seen to the NHS pension, have been changes going forwards. They do not affect pensions being taken, nor those who are working but built up benefits already to this date.

So, pay in. and rest easy.

I am a nurse, and no I don't have time! I work 13 hour shifts & spend my days off chasing my tail/catching up on chores/sleeping... thanks for the advice.

jennyc85

kidmugsy wrote: »

On behalf of taxpayers throughout the land I should like to compliment you for your noble gesture of leaving the burdensomely expensive NHS pension scheme. Good for you; if only millions of other government employees would do the same, there might be some chance of rescuing the public finances. A hundred thousand thanks.

Thanks for your constructive comment :-/

For your information I am nurse, who spends 13 hours a day cleaning up s**t for far less than the 'average' national salary.. often skip my breaks & go without food/drink/toilet to care for my patients, stay late EVERY day UNPAID as we are always short staffed.. and have on a couple of occasions even ended up with bladder infections due to becoming dehydrated & not peeing when you need to due to not having time. So I think I deserve every penny I am entitled to thank you very much! Or we could all quit & find a much easier/better paid job & see how long people would survive then...

hyubh

jennyc85 wrote: »

Is this really the best idea??

Yes.

I think i'm right in saying that up until 2 years you are free to get your money back & opt out of the pension?

Yes, though as redbuzzard said, any refund will be net of the tax and NI relief you are getting by making pension contributions.

what happens if the NHS collapses in the future??

It won't, but even if it did, that wouldn't mean previously accrued pension rights suddenly no longer existed.

Or if I change my career??

You will have a 'deferred benefit' in the NHS scheme, i.e. a small NHS pension waiting for you when you meet the scheme retirement age.

Or if it all becomes privatised??

More realistically, if your department is outsourced and you are transferred to a new employer, employment legislation will mean the new employer would probably become an 'admitted body' in the NHS scheme to protect transferred staff's pension rights.

Am I better off getting my money back before its too late and putting it somewhere else?

Certainly not.

slowcoachme

My advice is to stay in NHS scheme. I am also a nurse and will retire next year, I paid into the scheme for 9 years from 72-81, then left NHS for 20 odd years, returning 9 years ago. You are only 27 I know but time creeps up, and I am so pleased that I paid in those early years as it stays in your account and I now have 18+ years of pension. After 40 odd years of nursing, believe me I am ready to go. The NHS is not a charity, so don't give them your unpaid services, leave your shift on time, the next shift can carry on with whatever you have not had time to do.
Good Luck.

jackyann

I am a recently retired nurse. A long time ago, I sat in what we called Preliminary Training Scheme and filled in all the forms put in front of me. 2 were optional: on the advice of my mother I joined the pension scheme, and on the advice of my father I joined a union. I have never regretted either.
I am not sure if kidmugsy is flaming or being ironic (you get both here, especially on public service pensions!). Yes, it was a great job and I wouldn't have done anything else, but I too think that I deserved my pension. I worked very hard, physically, mentally & emotionally.
I know that other people work very hard in other jobs that don't have such pensions, and some are not on good wages either. That is not my fault.

When I joined the NHS in tha late 60s, some of my clever friends told me I was foolish. They were going to work for companies who paid them much more than I would ever earn. I just knew that wouldn't make me happy. Many of them now envy me my public service pension, they don't call it "chickenfeed" any longer! (is one of them kidmugsy?)

To get back on track: in the 80s there were a number of pension companies that targeted NHS staff, using similar arguments to the ones you have heard. A lot of staff regret signing up now (some I know are arguing "mis-selling") Also I agree, that NHS pensions are safer than any others.
Hang on in there - and thank you!