Pension Scheme - temp opt out?

[scoobysnaxx]

I am considering opting out of my pension scheme (NHS) for a few months just to up some cash flow during a difficult time. This would only be temporary (a few months)

has anyone done this?

I took some early pension contributions out of the NHS pension in my 20s, about £400 for my wedding dress. Have just retired and have calculated I would be eligible for around £2000 extra each year for life ( index linked) if I had not done that. Counts as one of my top financial mistakes.

Oh my word okay won’t be doing that ever then!

This is such an important point. My husband recently died having become completely unexpectedly seriously ill. He was previously an extremely healthy man in his mid 40s. Being an active member of a similar scheme made a huge difference to financial security when he was ill and afterwards. If he had opted out and fallen ill it would have been a completely different picture. I know no-one expects it to happen to them, but sadly it can happen to anyone.

Another sad example here of a woman who opted out of the scheme and then died shortly afterwards, so they missed out on the death in service benefit and pensions for her dependant children.

In this case she had opted out within 2 years and got a refund of all her contributions, so no further benefits were payable when she died. If someone opted out and was given deferred benefits there would be something payable on death - but nowhere near as much as would be payable on the death of an active scheme member.

www.mirror.co.uk/news/uk-news/mum-quits-nhs-pension-pay-27734990.amp