NHS Pension

zagubov

QrizB said:

tmoneysauce said:

So what would your advice be? Stay in a pension and not have any money for food and other essentials whilst still paying for debt? 

The IVA should still leave you with money for essentials.

If you post over on the debt free board, you should be able to get advice on how to manage your IVA.

If (as you've implied) you are still paying into a private pension, but have opted out of the NHS one, you should really think about switching those around; pay the NHS contributions but stop the private ones.

I know we can't give advice but tell me what is wrong with this idea. ^^^^^^^^^^^^^^^

Emmia

zagubov said:

QrizB said:

tmoneysauce said:

So what would your advice be? Stay in a pension and not have any money for food and other essentials whilst still paying for debt? 

The IVA should still leave you with money for essentials.

If you post over on the debt free board, you should be able to get advice on how to manage your IVA.

If (as you've implied) you are still paying into a private pension, but have opted out of the NHS one, you should really think about switching those around; pay the NHS contributions but stop the private ones.

I know we can't give advice but tell me what is wrong with this idea. ^^^^^^^^^^^^^^^

I expect the amount the OP is putting in the private pension is somewhat less, than the value of the percentage of their salary which must be paid into the NHS pension. 

E.g. they pay £100pcm into the private pension but the NHS scheme requires them to put in £300pcm

It makes no sense as to why they'd be doing this otherwise.

tmoneysauce

Emmia said:

zagubov said:

QrizB said:

tmoneysauce said:

So what would your advice be? Stay in a pension and not have any money for food and other essentials whilst still paying for debt? 

The IVA should still leave you with money for essentials.

If you post over on the debt free board, you should be able to get advice on how to manage your IVA.

If (as you've implied) you are still paying into a private pension, but have opted out of the NHS one, you should really think about switching those around; pay the NHS contributions but stop the private ones.

I know we can't give advice but tell me what is wrong with this idea. ^^^^^^^^^^^^^^^

I expect the amount the OP is putting in the private pension is somewhat less, than the value of the percentage of their salary which must be paid into the NHS pension. 

E.g. they pay £100pcm into the private pension but the NHS scheme requires them to put in £300pcm

It makes no sense as to why they'd be doing this otherwise.

For clarification im not putting money into a private one. I’m just mentioning that I had a private pension from a previous employer which I know isn’t going to be the same as a state one but I have extra money from there. I cannot afford to put money into any pension at the moment 

Emmia

tmoneysauce said:

Emmia said:

zagubov said:

QrizB said:

tmoneysauce said:

So what would your advice be? Stay in a pension and not have any money for food and other essentials whilst still paying for debt? 

The IVA should still leave you with money for essentials.

If you post over on the debt free board, you should be able to get advice on how to manage your IVA.

If (as you've implied) you are still paying into a private pension, but have opted out of the NHS one, you should really think about switching those around; pay the NHS contributions but stop the private ones.

I know we can't give advice but tell me what is wrong with this idea. ^^^^^^^^^^^^^^^

I expect the amount the OP is putting in the private pension is somewhat less, than the value of the percentage of their salary which must be paid into the NHS pension. 

E.g. they pay £100pcm into the private pension but the NHS scheme requires them to put in £300pcm

It makes no sense as to why they'd be doing this otherwise.

For clarification im not putting money into a private one. I’m just mentioning that I had a private pension from a previous employer which I know isn’t going to be the same as a state one but I have extra money from there. I cannot afford to put money into any pension at the moment 

Would have been helpful if you'd mentioned that a few pages ago!

If you've not done so already, I think you should probably head over to the debt free area for some advice on how you can tackle your situation (so you can rejoin the NHS pension, and enjoy life generally)

dunstonh

tmoneysauce said:

Emmia said:

zagubov said:

QrizB said:

tmoneysauce said:

So what would your advice be? Stay in a pension and not have any money for food and other essentials whilst still paying for debt? 

The IVA should still leave you with money for essentials.

If you post over on the debt free board, you should be able to get advice on how to manage your IVA.

If (as you've implied) you are still paying into a private pension, but have opted out of the NHS one, you should really think about switching those around; pay the NHS contributions but stop the private ones.

I know we can't give advice but tell me what is wrong with this idea. ^^^^^^^^^^^^^^^

I expect the amount the OP is putting in the private pension is somewhat less, than the value of the percentage of their salary which must be paid into the NHS pension. 

E.g. they pay £100pcm into the private pension but the NHS scheme requires them to put in £300pcm

It makes no sense as to why they'd be doing this otherwise.

For clarification im not putting money into a private one. I’m just mentioning that I had a private pension from a previous employer which I know isn’t going to be the same as a state one but I have extra money from there. I cannot afford to put money into any pension at the moment 

An IVA should not require you to opt out of the NHS pension.  Something has gone wrong.  It should be assessed on your income after that.

Pollycat

tmoneysauce said:

Dazed_and_C0nfused said:

tmoneysauce said:

I’ve been working for the NHS for 2 years and 6 months. I opted out of the pension scheme 2 years into it as it was too costly for me. A couple months later I heard that I could be refunded the pensions so I sent off the form only to discover that I was rejected due to working over 2 years for the NHS. I had sent the form 2 years and 3 months into service. Is there any way that I could try to argue against this, or should I just cut my losses?

Trust me you will be more than happy to have that 2+ years worth of pension when you reach retirement age.

A refund of pension contributions (from which non refundable tax would have been deducted reducing what you actually got back) from a public sector pension scheme is virtually always a terrible choice financially.

Hopefully you will soon realise you are essentially taking a huge pay cut by opting out, not to mention the extra tax you will almost certainly now have to pay 😳.

The sooner you opt back in the better.

Thank you. However this is temporary, the pay difference with the extra tax actually has helped me and I also have a private pension that I save money aside for

FTR, this is what the OP said ^^^.
It certainly seemed like the payments into his private pension were still happening.
I agree that the OP might benefit from a visit to the DFW board.

JoeCrystal

My understanding is that the OP opted out just three months ago. Rather than figuring the issue out, I would think of speaking with whoever set the IVA and explaining that you need the money to pay the NHS pension contribution. After all, it is not your fault that the employer decides the pension contribution percentage, and therefore, you are expected to maintain the pension contribution at that level.

german_keeper

tmoneysauce said:

QrizB said:

Per the OP's other thread, they're 26 and four years into an IVA dealing with debts they ran up in their early 20s.

While I agree that opting back into the NHS pension is likely to be in their long-term best interests, I can understand how retirement might seem a long way away and immediate needs appear more important.

Yes this is correct. Opting out of pensions temporarily has helped me now with my finances

The OP also posted this so I did take "pensions" to mean the NHS one and the private one but it wasn't clear. Don't suppose it really matters.