Opting out of pension

adonis10

crv1963 wrote: »

I work with some really bright people who have the option of the NHS Scheme, which even with its' latest reforms is a really good scheme but some still opt out saying "I could use that 9% I'd pay for my holidays/ mortgage/ car" and when I tell them that it's crazy thinking I'm told well I could be dead next week, or my Dad dies at 60 so I won't get much back. Others (most) like me see it for what it is a dammed good scheme with good benefits!

This one gets me every time. With the advances in medical research do they actually feel that it is a given that they will die of the same problem at the same age? "I could be dead next week" is even more ridiculous - yes, we all could be dead next week, obviously, but what are the actual chances of that? Very, very low I would guess. And people are actually not willing to sacrifice a few quid now in order to help themselves when they are much older - baffling. Unless one has a terminal illness, in which case I totally agree that retirement planning is a complete waste of time and money, it is worrying how many people are willing to ignore it. Don't get me wrong, I am not perfect as have only started taking it seriously in the past few years (albeit most of my previous jobs didn't have a workplace scheme and I've job hopped a lot since mid 20's) but the amount of people who won't even consider it is worrying.


As soon as one adjusts to the new, lower net pay it is fine. I upped my conts in July and it seems completely normal now and am already planning to increase by another 5% in June - sacrificing £80 net pay for £136 into pension seems like a good deal to me.

crv1963

adonis10 wrote: »

This one gets me every time. With the advances in medical research do they actually feel that it is a given that they will die of the same problem at the same age? "I could be dead next week" is even more ridiculous - baffling. But the amount of people who won't even consider it is worrying.


As soon as one adjusts to the new, lower net pay it is fine. I upped my conts in July and it seems completely normal now and am already planning to increase by another 5% in June - sacrificing £80 net pay for £136 into pension seems like a good deal to me.

I agree Adonis10 but yes people do frequently say this! I too am late to the party so to speak in terms of planning, I have always paid into the pension scheme though and did for a time pay into an AVC but stopped that when Equitable Life ran into problems- then saved into a S&S ISA.


I and my wife are looking to retire between 55-62 depending on what we can save to supplement the NHS Pension before the SP starts at 67.


I'm actually on the last day of sick leave following a heart attack and return to work Monday after 6 months recovery- I have not wasted my time off. I've read and re-read much about pensions, mortgages debt reduction and future planning- a lot of it but not all of it on this website.


We've looked at and managed to reduce the costs of telephone, television, broadband, car running costs (although MOT yesterday did set me back £268!), energy bills, mortgage and improved savings rates and of course pension planning. All mainly due to research on this site and others thoughts and views/ experiences.


We currently save £300 pm cash and from end November are adding £250 pm that I used to burn in cigarettes!!! Luckily I have managed to stay smoke free for 24 weeks now! These monies are in addition to what we save into our pensions.