Pension Contributions vs Mortgage Overpayments

swindiff

Don't the NHS also contribute a % to your pension, if you freeze it this will stop, bad idea. I am with the USS (university). I contribute 7.5% but my employer contributes 16%. I thought the NHS scheme was similar.

atush

This is an ABSOLUTELY insane idea.

The value of your pension is not the 9% or so you pay in, but the fact that your employer (ie the taxpayer) pays so much for it. To get this pension in the private sector, the amt of contributions made by you and the employer would have to be around 25-30%. So you would be throwing away all that money, plus then have to pay tax and NI. You'd get only a fraction of your 191 back.

So think of other ways to make more money, or share the spare room you have now, or move out to a nice area less expensive for your larger place.

kangoora

atush wrote: »

This is an ABSOLUTELY insane idea.

The value of your pension is not the 9% or so you pay in, but the fact that your employer (ie the taxpayer) pays so much for it. To get this pension in the private sector, the amt of contributions made by you and the employer would have to be around 25-30%. So you would be throwing away all that money, plus then have to pay tax and NI. You'd get only a fraction of your 191 back.

So think of other ways to make more money, or share the spare room you have now, or move out to a nice area less expensive for your larger place.

I concur. You'd get around £120/month back for not paying your £191 (so less than £1,500 a year) AND you would be losing the 'unseen' £500 or so that is nominally being fed into your pension by the NHS/Taxpayer (so 'losing' £6k+/year in pension contributions + tax relief).

Move to a North Yorkshire NHS trust, you could buy 2 x 4 bed houses where I live for £400k (with some change left over), plenty of letting bedrooms then

tightasagnats

kangoora wrote: »

I concur. You'd get around £120/month back for not paying your £191 (so less than £1,500 a year) AND you would be losing the 'unseen' £500 or so that is nominally being fed into your pension by the NHS/Taxpayer (so 'losing' £6k+/year in pension contributions + tax relief).

Move to a North Yorkshire NHS trust, you could buy 2 x 4 bed houses where I live for £400k (with some change left over), plenty of letting bedrooms then

Thanks folks for your tips. I wouldn't leave London for anything though, hard as that is for some to comprehend, my community and life in the bad city is worth more to me than any amount of money/security tho' I do like pies.

I've since found out you can opt out and back in again anyway, but for the amount I'd be saving, it isn't worth it. Thanks, have a good Xmas all.

atush

So stay in london but move out one area. Cheaper property, so more space.

justme111

atush wrote: »

So stay in london but move out one area. Cheaper property, so more space.

I think op is happy where he is , it does not sound like a good idea to gamble on neighbourhoods in London and op's rooms bound to be let at lower values .
Op , glad you got an answer to your question.

atush

Sorry, dont agree.

The OP is so unhappy in current house they want to give up a gold plated pension for a pittance in an attempt at more space.

moving one underground stop further out can pay dividends as can extending into a loft etc.

W/o giving up a great pension. And still being in london.