NHS Pension

Dazed_and_C0nfused

From another thread the op is band 3 NHS.

Once on the top of the scale (maximum of 2 years to reach the top) salary is £26,598.

So pension contributions ~£1,400 after factoring in the tax reduction.

And pension accrued of £492, before the generous annual revaluation.

powerspowers

Can you pay half? Local government pension scheme lets you but I don’t know about nhs

Silvertabby

powerspowers said:

Can you pay half? Local government pension scheme lets you but I don’t know about nhs

Unless corrected, the 50:50 scheme is unique to the LGPS.  Pay half rate contributions in return for half rate pension (but full rate death and ill health benefits).  It was introduced as an alternative to opting out for those undergoing temporary financial problems - it was never intended to  be a long term alternative to the main scheme.  

Purplelady65

Yes that’s correct. The NHS doesn’t offer a 50:50 scheme. 

itsthelittlethings

@sarah69 the pension is worth having if living costs ever go down.

GrubbyGirl_2

I am an NHS pensioner so know first hand what a bad decision you have made by opting out.  If you're relying on the state pension only just look at your outgoings today and ask yourself if £230.25 a week will be enough to live on because that's all you are going to get to live on for the rest of your life.  Much easier to make small sacrifices now than have to live on £230.25 forever. If you are a band 3 as others have indicated your contributions are far less that £200 a month.  Talk to your HR department, find out exactly what your payments will be (and remember you also pay 20% less tax on that amount), then find a way to pay it.  

I hate to say it but you made the worse decision in your life by opting out

Emmia

Sarah69 said:

I simply cannot afford the contributions it would be over £200 a month. I literally live month to month and can’t afford to save even £50 a month! 

Although more usually used in cases of debt, I wonder if a SOA might help with identifying areas which could be economised on to help afford the pension.

If you can't afford to save £50 a month as it is, you're already in a precarious position financially.

https://www.lemonfool.co.uk/financecalculators/soa.php

daveyjp

Rather than considering the contribution a deduction from your salary, have in mind what is actually heappening and what you are accepting.

By not contributing to a pension you are now being paid a lower salary than your colleagues, so are doing your job for less than than it is actually worth.

This is because your pension is more of a deferred salary payment.

Marcon

Emmia said:

Sarah69 said:

I simply cannot afford the contributions it would be over £200 a month. I literally live month to month and can’t afford to save even £50 a month! 

Although more usually used in cases of debt, I wonder if a SOA might help with identifying areas which could be economised on to help afford the pension.

If you can't afford to save £50 a month as it is, you're already in a precarious position financially.

Which is why they aren't in the NHS pension scheme - which they would probably love to join. 

There are some helpful answers on this thread, especially in terms of what OP's contributions would be, but others (insane! bad decision!) are tone deaf and aren't going to help someone living from hand to mouth. Sometimes in life it isn't what you say, but how you say it...and a little more empathy might not go amiss.

Marcon

Brie said:

I suggest you also have a look at what you might get from the state pension (link below).  It might scare you to consider if you can live on that amount.

Don't forget that there are normally tax/NI savings when you pay into a work pension.  So the actual hit to your take home pay may not be as hard as you think.  And if you opt in when there is even a small salary increase you probably won't even notice the difference.  

That only ever applied to personal contributions to occupational schemes where the employer held a contracting out certificate - and contracting out for all schemes ended in 2016.

Any NI saving nowadays comes from making contributions by salary sacrifice - which the NHS pension scheme doesn't permit.