superannuation vs debt

Deito1983

Hey there, this is the closest thing I've come to the appropriate forum to query this.


I work for the nhs, earning £23132 per annum as a new graduate.


I have nearly 10k debt of various sources due to university in Scotland.


It has all been transferred to 0% interest rate balance transfer cards for variable lengths, between 12-28 months.
I never miss payments and because of the low interest my minimum payments are super low. this leaves me with a lot of expendible income I can direct towards my expensive debt.


I do however have a personal loan with BoS which does charge interest - Its a flexible loan which allows me to make additional payments with no penalty (which I do monthly) its 2.4k over 82 months or something ( I kept it long so that the minimum payment is low) everything else is additional payment and does not cost interest.
I'm paying off the loan at roughly £500 a month presently however, I'm looking for ways to speed it up. I've taken pretty much all advice this site has to offer and I am still doing things like NHS zonecard loan (which is charged through my wage slip from my gross income rather than my net) also paying annually is cheaper.


anyways. that's me upto date. my question is:


I pay 7.1% superannuation (pension) that equates to about £120-160 a month depending on overtime.


does the employers contribution make continuing worthwhile despite my debt or should I opt out for a short period ( around 14 months) to increase my debt repayment by £120-160. per month (or £1440 a year)??
(p.s. I THINK the NHS contributions bring me upto 13% superannuation. I'd need to check that with payroll though)


Any insight would be welcome.


Kind regards

Southend1

DO NOT OPT OUT OF THE NHS PENSION!!!!!!!!!!

Just don't.

Thrugelmir

Stay in the scheme.

Do as much overtime as you are able. Use this to address your debts.

hyubh

does the employers contribution make continuing worthwhile

Yes, though more exactly it's the guaranteed benefits (directly backed by the state) rather than the employer contribution that makes continuing worthwhile. The employer rate is artificially low at 14% even by the scheme's own standards - the government cancelled the scheme's last valuation, and after the one before decided to just ignore the actuary's recommended employer rate (it's all 'off the books' debt, so who cares, or so the government seems to think...).

(p.s. I THINK the NHS contributions bring me upto 13% superannuation. I'd need to check that with payroll though)

The current scheme is 1/60 final salary, no automatic lump sum: i.e., for each year of membership (pro-rated for any periods of part time working), you earn 1/60 of your 'final' whole-time equivalent salary in annual pension, uprated by CPI each year. Even when the scheme changes next year into a 'CARE' one it will still be a very good deal.

green_man

It sounds like you have your priorities just about right.

Stay in the pension
Try to pay off your debt as soon as you can.
Pay of the debt with the highest interest rate first.