NHS pension vs. SIPP

awm112

Hi all, quick question to which I probably know the answer...


I'm currently working as a junior doctor two years post qualification and not currently paying into a pension scheme as I've been using the money to pay off student debt. Now that I'm debt free I'm looking into joining the NHS pension scheme. I've been investigating SIPPs on HL's website and just wondering if people have thoughts regarding the different options available? I'm guessing the NHS pension will turn out to be superior?


Thanks

Triumph13

Speaking as a taxpayer, thank you very much for turning down many thousands of pounds worth of benefits over the last 2 years. The NHS pension will be several times better than the SIPP. Phone HR and join NOW.

greenglide

You have thrown away two years of contributions in the NHS pension? Provided to you, largely, by the state? Money from the NHS you can never get back?

Was it proper student loan you paid off instead or high rate overdraft?

Remind me not to use the services of the hospital at which you practice.

awm112

Yes because my financial understanding of pension schemes mirrors exactly my professional skills.


Thanks for your enlightenment.

xylophone

It was not a good move not to join the NHS pension scheme - surely you were given information about it when you commenced employment?

http://www.nhsbsa.nhs.uk/Documents/Pensions/2015_Members_Guide_(V4)_03.2016_-_digital.pdf

somethingcorporate

I'd hope you would be able to research better before taking such decisions. The financial consequence to you of not being in the NHS pension for those 2 years could be quite dramatic.

The NHS pension is gold plated with no risk to yourself with the SIPP with no employer contribution going to be far, far inferior.

dunstonh

Now that I'm debt free I'm looking into joining the NHS pension scheme.

Should have joined earlier and delayed the student debt... as has already been said. A costly decision.

I'm guessing the NHS pension will turn out to be superior?

on a similar scale of difference to applying a plaster to a grazed knee or amputating the leg.

awm112

Still have SLC debt. Paid off high interest credit cards mainly. The error of youth.

somethingcorporate

Act in haste, repent in leisure.

greenglide

At least student loans isnt "real" debt. They dont come knocking on your door for it. If you have no earnings you dont pay anything.

Joined NHS scheme yet? There is something about NHS and teachers, they are reluctant to join a scheme the rest of us would kill for.

woolly_wombat

awm112 wrote: »

Still have SLC debt. Paid off high interest credit cards mainly. The error of youth.

Well done for paying off the credit cards.

I suggest you join the NHS pension without further delay. It's changed from final salary to career average but is still a very generous scheme, for which your employer is paying handsomely.