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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To come out of my nhs pension

31 replies

imloosingthisgsme · 05/02/2023 17:45

I'm struggling with money at the minute, with the energy prices going up, cost of living etc.
i pay over £200 a month NHS pension and I am thinking of coming out of it for a couple of months. Am I being ridiculous?

OP posts:

Original poster

imloosingthisgsme · 05/02/2023 17:45

Just to add, I've paid into it for about 8 years

OP posts:

PugInTheHouse · 05/02/2023 17:47

Don't do it, you will struggle to pay back in and it also won't give you back £200 as the tax savings are so good on it also.

LandlubbingKraken · 05/02/2023 17:51

This would be the last thing I'd consider if I was struggling. The NHS pension and benefits are very good.

sliceoflife · 05/02/2023 17:56

Absolutely do not do this. You will regret it later.

FrownedUpon · 05/02/2023 18:01

No, don’t do it. You won’t get the full £200 in your wages anyway because of tax. The NHS pension is so valuable, stick with it.

OddBoots · 05/02/2023 18:02

It's your money and your choice but it is a lot to give up.

Are you at risk of losing your home or anything else serious if you don't have this money?

You said for a couple of months, what do you think might be different then?

Original poster

imloosingthisgsme · 05/02/2023 18:07

Thanks for advice. Deep down I know I'm being stupid but I'm just feeling a bit low at the minute, partly due to cost of living etc, but then it got me thinking I'm paying all this money into pension now whilst I'm struggling, what if I don't even live until pension age?
I'm not at risk of losing my house or anything that severe, just feel like I don't have much money to treat myself, pretty much like I'm working to get by.

OP posts:

Spotsstripes · 05/02/2023 18:12

As pp have said you'll not gain £200 and you will loose more in employer contributions.
Also I know from personal experience you may need your pension sooner than you think. I became disabled and assessed unable to ever work again in my 30s the one thing I am thankful for is my nhs pension. So my answer would be look for other options in the first instance (promotion, benefits (this could also mean your entitled to reduced bills etc), cutting costs, meal planning) your probably doing most but worth looking to see if there's anything you've missed.

DarkDarkNight · 05/02/2023 18:12

No don’t do it, have a play about with a take home pay calculator to see what you would take home were you not paying in to a pension or paying in less. You probably won’t gain as much as you think back. You won’t get an extra £200 in your pay.

I know times are hard but your employer is also contributing, you will be waving goodbye to that money.

DIMbum · 05/02/2023 18:14

I've done it this year ( not public sectors but work doubles what I contribute)

I can rejoin at any point so plan to go back as soon as possible and certainly next year. But prices rises and energy costs and no pay rise ( yet) mean I needed to do this

I don't like it but I need every penny I can get right now

1FootInTheRave · 05/02/2023 18:21

I have a lot of colleagues considering the same as they are struggling so much.

I also have considered it but have decided to continue as long as I can.

Parisj · 05/02/2023 18:24

Really best not to. Can you up your hours, do a bank shift, or go for the next grade?

Calmdown14 · 05/02/2023 18:25

If you pull out you may not go back in on the same favourable terms (many public sector schemes have changed the benefits in recent years).

If you have dependents then you may be giving up your death in service benefits as well.

Go on money saving expert and get help with your outgoings as a statement of affairs. You'll get good advice for other areas you may be able to shave

IncompleteSenten · 05/02/2023 18:29

Unless you're really desperate like starving or about to be evicted or something, I really wouldn't.

Once you're out you'll find it really hard to 'give up' that money again. Col crisis isn't going anywhere.

the unpleasant truth is were all pretty much fucked and we should all be making plans for our retirement as best we can, if we can, because things are not going to get any better and I seriously doubt the state pension is going to be much of anything in the future.

plask · 05/02/2023 18:43

You would have extra money in your hand BUT you would be giving up the employers contributions as well as your contribution to your pension.

This should be the very last thing you think of doing.

AnyFucker · 05/02/2023 18:45

Don’t give up your NHS pension to “treat yourself”

catgirl1976 · 05/02/2023 18:47

Do they not have a 50/50 scheme where you can half your contributions for a period? My local gov pension has this so might be worth checking.

This would be a better option but if you can cut back anywhere else to keep lying in I really would as these pensions are really good and you will likely come to regret it.

CrazyCorgi · 05/02/2023 18:48

Please don’t do this as you’re literally giving up free money. My old colleague did this (although it ended up being for about 12 years) and she said it was one of the worst decisions of her life. You’ll be working longer and harder by giving up that free money. Go through your budget over and over and see what you can cut out or cut down on. Can you take in a lodger? That’s £625 a month tax free. Look on Reed, there’s often WFH jobs that you can do in the evenings. Maybe a virtual call centre or virtual PA. You can get through this.

isthewashingdryyet · 05/02/2023 18:49

Do not give up your NHS pension. It also has a death in service benefit for OH and or kids, so if you don’t live long enough to benefit, they will find the money so useful should the worst happen.

Cosmos123 · 05/02/2023 18:51

That £200 a month will be an expensive decision as you will lose so much more.
Could you do bank shift, sell something or reduce any other outgoings. ANYTHING BUT PENSION.

BinturongsSmellOfPopcorn · 05/02/2023 18:53

Do they not have a 50/50 scheme where you can half your contributions for a period?

No, I'm pretty sure NHS is all or nothing.

As others have said, this might be worth considering in a genuine financial emergency, but not for luxury spending. You'll gain less and lose more than you think.

Snarf23 · 05/02/2023 18:57

Bank or agency shifts maybe when on leave can bump a wage up, nights or weekends too. Don’t come out the pension it’s not worth it if you can manage. You won’t get £200 either. Once you come out it will be hard to restart. I’ve worked with a few that have worked longer due to not being in the pension at times.

PitYerTapOan · 05/02/2023 18:58

That £200 will only get you about £160 and you'll lose loads more than £200 off your pension. Up to you if you think it's worth it but you really would lose much more than you gain. If your contributions are £200 a month you must be on a fair whack. I know times are tough but on that type of wage you've got more wiggle room than most.

USaYwHatNow · 05/02/2023 18:59

Hey OP, NHS Midwife here. I have taken a break from my pension whilst on mat leave. I meticulously planned our budget and repeatedly asked payroll for a projection of my pay over the 12 months (decided to split my wages across the whole year). They cocked up and didn't stipulate that the projection was gross not net, so I was £300 a month down than what I budgeted for which we couldn't afford not to have.

I decided therefore to forgo my pension for a year to recover that money and will go back into the scheme when I go back in September.

I made this decision on the basis that I have life/critical illness insurance, and in the event of my death whilst on mat leave, my life insurance would pay out, negating the need for the life assurance scheme that comes with the pension (3x annual salary paid to my husband).

Ultimately, its up to you, but I know of a couple of girls at work who have done the same whilst on mat leave/to clear debts etc for a short period of time.

pompomdaisy · 05/02/2023 19:03

Don't. I've just started claiming my nhs pension and I'm bloody glad I kept it going. It's enabled my DH to step into a less stressful job and improved both our lives.

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