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Question on Final Salary Pension
SugarPlumFairy_3
Posts: 29 Forumite
Hiya,
Am just looking for a bit of advice.
I have been paying into my final salary pension (USS) for 2 years and pay in about £102 a month. I am having some problems with credit card debt at the moment and was thinking of opting out of the pension for a year or so and using the money to pay off some of the debt.
I have contacted the pensions department at work and they said that I could withdraw from the scheme then I would have to reapply, and would probably have to have a medical.
So my quesion is whether this is a good idea? and would i have any problems rejoining the scheme at a later date? Not sure if this has any bearing but im 26.
hope someone can offer some advice
thanks
Am just looking for a bit of advice.
I have been paying into my final salary pension (USS) for 2 years and pay in about £102 a month. I am having some problems with credit card debt at the moment and was thinking of opting out of the pension for a year or so and using the money to pay off some of the debt.
I have contacted the pensions department at work and they said that I could withdraw from the scheme then I would have to reapply, and would probably have to have a medical.
So my quesion is whether this is a good idea? and would i have any problems rejoining the scheme at a later date? Not sure if this has any bearing but im 26.
hope someone can offer some advice
thanks
Debt free date: Feb 2010 :eek:
(Hopefully sooner!!!)
(Hopefully sooner!!!)
0
Comments
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Its probably a bad idea. You are buying years of service. You are also buying life cover and potential sickness benefits as well. All for the small sum of £102pm.
Making up those years in the future will cost you a lot of money and if you were to become long term ill whilst not being in the scheme, you could really lose out heavily financially.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Not to mention the fact that final salary pension schemes are being withdrawn to new entrants left, right and centre, and you might end up unable to rejoin - sacrificing a huge potential benefit for the sake of short-term cash flow.0
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Thanks. I was kind of thinking it was a bad idea - but thought i should seek out some expert advice as I dont really understand all this pension stuff!Debt free date: Feb 2010 :eek:
(Hopefully sooner!!!)0 -
The USS scheme is an excellent one - not a good idea to put future membership at risk by leaving now.Trying to keep it simple...
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Stay in the scheme FSS pensions are great.
If you can spend less and/or earn more................................I have put my clock back....... Kcolc ym0
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