Stay in NHS Pension or Opt Out?

janeseemore

Hi everyone,

I am currently a tempory worker in the NHS, I automaticly started paying the pension when I started work. I am moving to a fixed term contract soon. I am not sure if I should continue to pay the pension or if I should stop and get a refund? Reason being is that Im not sure if long term I will still be working in the NHS or if I will even live long enough to see that money (im in my early 30s)

Therefore confused

Manxman_in_exile

I joined the NHS on a fixed term 6 months contract in 1988. I didn't expect to be still there 25 years later, but I was. The current scheme is not as good as the one I was in, but you'll be hard pressed to find a better one. (I presume your new fixed term contract is still with NHS?)


I know many people who decided to opt out and I'm pretty sure they all regretted it later.


Even if you don't live to see it your spouse and/or dependents should still benefit.


(Edit: Just realised your new post is fixed term rather than substantive. If you are pretty sure you'll be leaving NHS when that contract expires, it might be worthwhile opting out. But you will lose death in service etc benefits which may or may not be a consideration for you. You used to be able to get a refund if you left NHS within two years. So you might be able to stay in the scheme whilst employed by the NHS but get a refund if you leave within two years. Unfortunately I don't know if this can still be done under the current scheme).

hyubh

janeseemore wrote: »

I am currently a temporary worker in the NHS, I automatically started paying the pension when I started work. I am moving to a fixed term contract soon. I am not sure if I should continue to pay the pension

Yes, stay in because (a) you may end up being there for a while after all (b) even if you are there for less than two years in total, and so not long enough to actually earn a pension, on leaving you would then have the option of a 'cash equivalent transfer value' to place into another arrangement, and the CETV will be well north of your personal contributions. Taking a refund (or opting out in the first place) would be the worst thing to do.

if I will even live long enough to see that money (i'm in my early 30s)

Why, do you have a hereditary illness that means your life expectancy is decades less than the average for your cohort...?

bugslet

Yes, FGS do not opt out. Try asking that on the pensions board and I promise you would not get one piece of advice saying move out of it.

And as hyubh says, unless you have a genuine reason not to believe that you will hit pension age, then there is a good chance you will.

Manxman_in_exile

hyubh wrote: »

on leaving you would then have the option of a 'cash equivalent transfer value' to place into another arrangement, and the CETV will be well north of your personal contributions. Taking a refund (or opting out in the first place) would be the worst thing to do.

That's better than what I said!

tykesi

Scary how someone in their 30's is so clueless about the benefits of pension provision. I doubt the OP is the only one though.

sacha28

tykesi wrote: »

Scary how someone in their 30's is so clueless about the benefits of pension provision. I doubt the OP is the only one though.

Unfortunately I am one of those who have no clue I have been paying into my NHS pension since 2002 (I'm now 34) and only joined because my nan told me I should!!

I don't think there is anywhere near enough education on pensions (if any?), I have many friends who don't, and never have, pay into a pension scheme :eek:

Anyway, I digress.....

clairec79

I thought you had to pay into a work place pension now (or will have to soon if it's not already)

hyubh

clairec79 wrote: »

I thought you had to pay into a work place pension now (or will have to soon if it's not already)

No, you you are free to opt out if you want.

Andy_L

To repeat myself from similiar threads, as a tax payer I would love you to opt out