New Pension

stinky_daddy

Sorry on posting this on my mobile, so this may have already been asked / answered (having trouble searching on the mobile site unfortunately).
My daughter has just started her first job (she is working in the NHS if that helps at all).
I know that the sooner she starts saving for a pension the better it will be, but, I am ignorant as to what the best option for her would be.
Ideally, we would want her to put away either £50 or £100 each month.

Any ideas on the best option?

TIA

s_d

p00hsticks

The best option by far will almsot certainly be for her to pay into the NHS Pension Scheme, but I don't know how much the employee contributions are

Dazed_and_C0nfused

stinky_daddy said:

Sorry on posting this on my mobile, so this may have already been asked / answered (having trouble searching on the mobile site unfortunately).
My daughter has just started her first job (she is working in the NHS if that helps at all).
I know that the sooner she starts saving for a pension the better it will be, but, I am ignorant as to what the best option for her would be.
Ideally, we would want her to put away either £50 or £100 each month.

Any ideas on the best option?

TIA

s_d

I hope you mean this would be on top of her NHS CARE scheme.

She should 100% stick with the standard NHS option.

If you post what grade she she is then an example of the generous benefits she will accrue can be provided.

An extra £50/£100 info a DC scheme would be good for adding some flexibility (and a larger overall pension of course 😊).

xylophone

Have a look here

https://www.nhsbsa.nhs.uk/member-hub/joining-scheme

dunstonh

Ideally, we would want her to put away either £50 or £100 each month.

Is this on top of the NHS pension? 
If you were thinking in defined contribution terms then the reality is that neither £50 per £100 are enough to be paying into a pension if it was the only retirement provision.  However, if its an increment on top of the NHS pension that is a better position.   Although it may be that using a LISA on top of the NHS pension may be a better option.

The NHS pension is not dependent on the payment into a pension but instead on your years of service and your pensionable salary.   So, you shouldn't think of it in monthly contribution terms.   No alternative she has available will come close to beating the NHS pension.

stinky_daddy

Hi,

sorry should have added in the original post, that this would be in addition to the NHS pension.

s_d

xylophone

Perhaps she could try something simple - maybe £100 a month into a  Target Retirement Fund with Vanguard?

https://www.vanguardinvestor.co.uk/what-we-offer/target-retirement-products

SarahB16

Do you mind me asking if your daughter is already on the property ladder?  Personally if I were in your shoes considering she will already have a fantastic NHS pension I think the priority should be enabling her to own her own home first (obviously I mean with a mortgage and not bought outright).  When she has achieved that only then would I consider making additional pension contributions.   

Nurse2047

She may want to look at NHS AVCs
https://www.nhsbsa.nhs.uk/member-hub/increasing-your-pension/money-purchase-additional-voluntary-contributions-mpavc

due to retirement age 68 I’m paying £100 into the AVC hoping it will bridge retirement before I reach nhs retirement age for 2015 scheme. 

https://www.mandg.com/pru/workplace-pensions/employees/public-sector-avc-schemes/nhs-avc-scheme?utm_source=vanityurls&utm_medium=301&utm_campaign=/nhs

cloud_dog

@stinky_daddy, as per @SarahB16 post, are you able to confirm your daughter's property situation?

Additionally, what are her more near term plans going forward?  If there is no property, and she is thinking of buying a property at some point (below the £450k limit) I would think prioritising putting money aside in a LISA; S&S if a number of years away, might be more beneficial for her.

stinky_daddy

Hi All

I thought I had mentioned in my OP that she had just started her first job.

She is 19.

No plans for property ownership currently (although she will put money aside for that purpose (probably into a LISA)), lives at home with her mother (they are not situated in London), I was under the impression that a pension saving / contribution was recommended (I certainly didn't realise the NHS pension was as great as it is)? 

I don't imagine she can have two LISA's though (one for house deposit and one for pension) she wanted a separate pension to save into, although a lower (separate pension) would be in addition to anything she received from the NHS (with her added contributions).

So, would people recommend the additional contributions into her NHS pension and then re-assess if she leaves their employ and then saving into the LISA for a property deposit?

TIA

s_d