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Do you have a private/work pension and if not, are you worried about it

(18 Posts)
stillawakeatthishour Wed 31-May-17 18:06:54

Just that really!

I have a pension through work, with the NHS, been paying in for 4 years and someone mentioned that i could
Cash this out...i am really cosiderong as i am only young and strugglinf for
Money at the moment.

Just after opinions and no one to ask irl

bimbobaggins Wed 31-May-17 18:18:40

I'm the opposite, when I started working in an NHS job a few years ago I thought the pension payment was too much and opted out bit now I'm getting on a bit I wish I'd taken it.

FurbysMakeSexNoises Wed 31-May-17 18:20:28

I also work for the NHS and all the financial advisors I've spoken to have said the pension is the best deal around and basically I'd be a fool not to contribute to it.

The rate of growth over the years plus employer contributions really adds up.

DancingLedge Wed 31-May-17 18:23:18

No I don't
Yes I'm terrified.

Really really, if you have enough money to eat, never do this.

Ellisandra Wed 31-May-17 22:50:24

You can't "cash it out", you're too young.
You'd be mad to not keep up this pension, the NHS pension is really good.

blue25 Wed 31-May-17 22:53:04

Honestly don't opt out of your pension unless you really are desperate. You'll regret it when you're older. It's a great pension and essentially you'd be throwing away free money if you opt out.

PlymouthMaid1 Wed 31-May-17 23:00:56

I don't have one as my employer only offered it last year and in my mid fifties already,low paid and with little hope of pay rises as the pension payments rise and low employers contributions, it is not such a great deal. However, young and in the NHS scheme, stick with it.

SafeToCross Wed 31-May-17 23:03:29

Remember, even a good pension scheme like the NHS is significantly impacted by things like part time working, career gaps, or low pay (so you get a percentage of a percentage if you are part-time of your average pay, only for the years you have completed. And remember, you won't get a state pension until, what is it for your age group, 68? 70? So this pension that you can take at 65 could help fill a gap, by providing a lump sum and an annual payment. I know it is a big contribution, and I know it hurts, but economic security in my retirement now scares me silly. If you know you are not going to continue working in the NHS, you could take it out, but I am not sure it would be good advice as that money should still be invested in a pension, and you can link it to similar schemes like local government if you move to a job in that sector.

SafeToCross Wed 31-May-17 23:05:37

Also, I know I cashed out an NHS pension I had contributed to for less than two years, maybe less than one year (shame, as I could have had the extra years now) but I am not sure if you still can after 4 years.

Pallisers Wed 31-May-17 23:10:21

If you are young now is the best time to pay into your pension. Honestly see if you can somehow manage it.

If you get employer contributions it is literally getting extra money for no extra work.

I have a pension fund I have been paying into since my mid-30s. If I had started even 5 years earlier, it would be worth a lot more (it is ok as I am old now).

I advise all my children to start paying into pension funds as soon as you start work. In the US it is a bit of a vicious circle because kids come out of college with so much debt they have to pay that off and postpone contributing to their 401ks - so poorer kids are penalised every way.

Stick with it!

wannabestressfree Wed 31-May-17 23:16:23

I opted out as I will never see it. Got a lump sum from one and waiting on the other...

kitkat6 Wed 31-May-17 23:22:16

(Financial adviser)
Generally speaking to cash out it is two years or less service you only get back your contributions and they will be taxed. Employer gets theirs back also. You are too young to take out the full amount unless over 55 this is not possible. As others have said whilst you are young is the best time to start pension contributions.
A good budget calculator would be a good place to start or the mumsnet frugaleers group

Slimthistime Wed 31-May-17 23:27:21

If you are young and facing debt, I would.

Happyfeet1972 Thu 01-Jun-17 14:06:47

Seriously a NHS pension is amongst the best you can get not cash it out. As has already been said, not sure you can in any case if you've been contributing for over 2 years.

Happyfeet1972 Thu 01-Jun-17 14:09:40

Also, your contributions to your pension will be quite low so you wouldn't get that much back compared to what you'll get back at pension age. I don't know the specifics of the NHS scheme but your employer will be paying significantly more than if you can find a way through now, by waiting you'll get 4-5 times the money at retirement age than you would do now.

lovingmatleave Thu 01-Jun-17 18:06:13

I was just thinking about my pension this morning, I checked out my forecast from the local government scheme I am in.jAm mid 40s, paid in for 14 years, much of it part time but have tried to put in AVCs as well.

I remember thinking in my early 30s it was so much to come out every month and wished I had that extra money. Well fast forward 10 years and I managed ok- yes for a few years I was overdrawn most months but got through it and turns out I didn't actually need the money. In fact looking at my statement wish i had put more in instead of buying clothes etc that didn't need. Now I will have to up my AVCs if I have any chance of retiring before I am 67.

It is so worth paying into pension when you are young.I would rather be poorer when young than old and poor and having to worry about affording heating etc.

Eatingcheeseontoast Thu 01-Jun-17 20:15:24

Do not drop out of your nhs pension. It's gold plated compared to anything else you could do. You'll thank yourself when retired and see people trying to manage on whatever tiny state pension is left.

scaryteacher Fri 02-Jun-17 15:05:00

Have pension with LGPS and TPS. Will get a lump sum at 60, then about £9k in pension. Dh has a public sector pension from HM Forces, and both will pay 50% widows/widowers pension. When you add in the state pensions we will get, then retirement will be comfortable. I moved abroad in 2006 when dh was posted abroad, so these are both deferred benefits, and I think I paid into the LGPS for 10 years (7.5 pro rata), and the TPS for five.

Even when it hurt to pay the contributions (big mortgage, new baby etc), I never considered stopping, as the rewards were worth the cost then. At 51 now, I am bloody glad that was the case.

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