NHS Pension - buying first home

Herzlos

The way compound interest works in pensions means you want to put in as early as possible.

Apparently if you pay in from 18-30 and then stop, you'll have more money at 67 than if you pay in from 31-67.

If you really need to drop your outgoings a bit for the mortgage, then I'd look elsewhere and at a push drop it down slightly but keep contributing *something*. But I'd argue if your budget is that tight you need to find a cheaper house.

Emmia

Herzlos said:

The way compound interest works in pensions means you want to put in as early as possible.

Apparently if you pay in from 18-30 and then stop, you'll have more money at 67 than if you pay in from 31-67.

If you really need to drop your outgoings a bit for the mortgage, then I'd look elsewhere and at a push drop it down slightly but keep contributing *something*. But I'd argue if your budget is that tight you need to find a cheaper house.

The thing with the NHS pension is that you can't reduce the contribution slightly, to still be paying in  but not get quite the same benefits... the percentage of salary is fixed.

Edit: If by elsewhere, you mean the OP opens a SIPP, that will also not get any employer contribution.

Windofchange

As others have said don’t do it. I’m nhs too and the pension is the primary thing that stops me jumping ship for private sector. Depending on what profession you are, really easy to pickup a bank shift or two and easily make up the £200. Band 5 nurse for instance you can make that in one bank shift. 

Stubod

no..no...no...no...no...no.....no...no....no....no...no.....no....no.....no.....no....nooooooooooooooooooooooooooooo

cr1mson

Another vote for no.

ReadingTim

Most people can probably save £200 a month by ditching the sky tv, expensive mobile phone contracts, netflix, takeaway coffee habit, gym memberships you never use, and shopping at Aldi or Lidl, so don't jeopardize your future financial well-being if there are other savings you can make instead.  

[Deleted User]

ReadingTim said:

Most people can probably save £200 a month by ditching the sky tv, expensive mobile phone contracts, netflix, takeaway coffee habit, gym memberships you never use, and shopping at Aldi or Lidl, so don't jeopardize your future financial well-being if there are other savings you can make instead.  

Dare I say that 'most people' don't have these things, particularly those saving for a house deposit.
Seems an odd suggestion to me?

Emmia

[Deleted User] said:

ReadingTim said:

Most people can probably save £200 a month by ditching the sky tv, expensive mobile phone contracts, netflix, takeaway coffee habit, gym memberships you never use, and shopping at Aldi or Lidl, so don't jeopardize your future financial well-being if there are other savings you can make instead.  

Dare I say that 'most people' don't have these things, particularly those saving for a house deposit.
Seems an odd suggestion to me?

I think it is obvious if you're thinking about trying to accelerate your savings / cut costs these are the areas you look at. 

In terms of Aldi / Lidl - it is perfectly possible to spend lots of money there, what people need to look at is the overall grocery budget and what they're buying irrespective of where they shop.