? opt out of pension scheme

victor16_2

Recently started a new job (NHS) and had first month's salary. It is assumed that unless you opt out you will join the pension scheme, therefore £121 was deducted from my salary.

I know how important it is to have a pension as I haven't been paying into one at all yet. I am still under debt management and have paid off nearly £3k so far but have a long way to go.

Do I start saving for old age now (am nearly 30) or do I concentrate on getting things paid off first?

I realise if I opt out my NI contribution will go up but £120 a month feels like a lot right now.

Any ideas?

dunstonh

realise if I opt out my NI contribution will go up but £120 a month feels like a lot right now.

£120 is the gross amount. £96 is the amount its costing you.

You have the problem that the actual benefit of what you are paying is probably an equivalent of around £400pm and its costing you just £96. You also run the risk of that scheme being amended in the future and you not being able to re-join the old scheme.

To put it really bluntly, its either be poor now or be poor later.

CLAPTON

victor16 wrote: »

Recently started a new job (NHS) and had first month's salary. It is assumed that unless you opt out you will join the pension scheme, therefore £121 was deducted from my salary.

I know how important it is to have a pension as I haven't been paying into one at all yet. I am still under debt management and have paid off nearly £3k so far but have a long way to go.

Do I start saving for old age now (am nearly 30) or do I concentrate on getting things paid off first?

I realise if I opt out my NI contribution will go up but £120 a month feels like a lot right now.

Any ideas?

its a fantastically good scheme... read up the full benefits and stay in

chesky369

"or do I concentrate on getting things paid off first? "

If you think along those lines, you will NEVER contribute to a pension

tanith

victor16 I have recently had to claim my NHS pension early due to ill-health..

All those years ago I seriously thought about not contributing as I was in a bad place back then and really needed the money for other things like keeping a roof over , but pay it I did and now I am so grateful for that pension as I am paying a mortgage with the help of OH and we would be back in that bad place if it weren't for me having my NHS pension coming in..........

So think very seriously about it before doing anything and the others are so right to say that you will always find 'something else that needs to be paid' and you will never start your pension... your NHS pension will serve you well in retirement... keep it going if you possibly can...its money well saved:T
EDIT: I meant to add that I was 38 when I started with the NHS and had to take early retirement at 58 as do so many NHS employees , another reason for keeping that pension going...

victor16_2

I meant to add that I'm only on a one year contract so would only be one year's contributions.....

Does the same advice still apply?

chesky369

That IS a fairly important omission.

However, I wouldn't necessarily let it stop you. You never know, your contract might be extended, or you might work for the NHS at some future point. Even if you don't you might well be able to get at what you have in the scheme through the trivial pension route.