supperannuation verses personal pensions

disneyian

Can anyone help me?

Would it be more beneficial to buy additional years in my NHS pension or invest the same contribution in a personal pension plan?

I need to buy an additional 7years to reach my full 40 year total, which will cost me approx £170 per month. Would this amount be better inversted else where?

dunstonh

Added years is typically the most expensive option but the one that gives more income per amount paid.

However, it is not necessarily the best option depending on your circumstances.

1 - If you income in real terms is going to be close to £20,900 a year, then any provision to increase that income will increase your tax burden [due to reduction in age allowance] and ISAs/investment bonds/low or zero yield investments may be better
2 - If you intend to phase your retirement and need different retirement dates or the occ scheme wont allow a retirement date you want, then personal provision may be better.