Nhs pension-opt out?

Moonwolf

You have mentioned your husband and children.

In addition to the pension benefits...

Remaining in the pension scheme gives them better protection that most life insurance.

If you opt out your husband will get 1/3 of your pension for life and if you have two or more children they will get another third between them (one child gets 16.875%) 

If you died while in the scheme they would get 2x salary, (2.025x your accrued pension if you have deferred) and your basic salary would continue to be paid for 6 months.  This might not mean a lot or it might be the difference between your husband being able to, for example, go part time to spend more time as a parent.

I think some of the comments here are unhelpful.  It is perfectly reasonable to make sure you know what you are giving up and that your understand there is a very good chance you will live until your mid 80s or longer as there are a lot of people who don't realise that.

However, jam tomorrow is no good if you can't even afford bread today, and even people on a good wage have ben caught in a terrible mortgage and energy trap recently.

Wonka_2

@kezzygirl I'm sure you're taken others on board but as someone who's been in your situation, albeit in business rather than NHS with a very good pension scheme I urge you not to do it. We extended the mortgage (luckily on a fixed rate for remainder of term) and I'm now in the position where at 53 I'm looking to 'retire' at 55 with a very healthy pension rather than my peers with many more years left to go. I've been with same employer throughout but any break in the level of the scheme I invested in would have cost me multiple times the savings made by doing it  

GrubbyGirl_2

As an NHS pensioner I think you would be making the biggest mistake of your life, please don't do it, find other ways of saving money

michaels

kezzygirl said:

Hello everyone. I have an nhs pension that I've been paying into for 8 years. I am now a band 7 which means 10% of my wage is being taken every month for pension. I have some debt that I'd like to clear and I am contemplating dipping out of the pension for a period of time and then rejoining. I am also conscious that many people don't meet the pension age, so would rather use the money for now. Thoughts? I know the pension is good, currently my death in service benefit is 93k, but I'm just considering my options. Thankyou in advance

I say go for it if it makes sense for you.  You only live once and who knows if you will have a long enough retirement to make up for the payments in.

Plus every taxpayer will thank you profusely.