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Pay into pension or pay off debt?
SillyLittleFairy
Posts: 8 Forumite
Hiya,
Im looking for some advice as Im very clueless when it comes to pensions!
I am 28, and have been paying into my USS final salary pension for about 4 years. Im due to start my PhD in March and so wont be making any more payments for a few years. In the meantime would I be better off cancelling the pension and putting the extra £150 or so into paying off my debts? Also, if I was to pull out of the scheme would I be able to get any money back now, that I could maybe use to pay off one of my loans?
Any advice is greatly appreciated as Im really not sure what to do for the best.
Thanks
Im looking for some advice as Im very clueless when it comes to pensions!
I am 28, and have been paying into my USS final salary pension for about 4 years. Im due to start my PhD in March and so wont be making any more payments for a few years. In the meantime would I be better off cancelling the pension and putting the extra £150 or so into paying off my debts? Also, if I was to pull out of the scheme would I be able to get any money back now, that I could maybe use to pay off one of my loans?
Any advice is greatly appreciated as Im really not sure what to do for the best.
Thanks
0
Comments
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The cost of the scheme that you do not pay is the scheme is considerable even compared to the normal cost of debt.
If you are eligible to pay in while you are doing your phD (I asume you have checked this) then you should do so IF you can manage everything else.0 -
SillyLittleFairy wrote: »I am 28, and have been paying into my USS final salary pension for about 4 years.
This is one of the best pension schemes in the country
Im due to start my PhD in March and so wont be making any more payments for a few years. In the meantime would I be better off cancelling the pension and putting the extra £150 or so into paying off my debts?
Probably not, but tell us more about your debts.What do you plan to use for money while doing your PhD?Also, if I was to pull out of the scheme would I be able to get any money back now, that I could maybe use to pay off one of my loans?
Pulling out is not allowed.Trying to keep it simple...
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Hi.
I don't know the scheme, is the money you are paying in a compulsory or voluntary contribution?I have worked for 5 years as a Pension Administrator and then a further year in a non-administrator pension role. I am not (and never have been) an adviser. Do not take anything I say as advice, it is information given on the best of my knowledge.0
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