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Opting out of NHS pension

151 replies

Tabl · 06/01/2024 13:59

Im early 30s single mother. At the end of the month I have no money left, better than being on minus I suppose. Im thinking of opting out of pension (£350 a month) to live a little. Would take my LO to do some travelling, days out etc.
I would do it maybe for a year or two. I feel like Im not living but just existing. Anybody else has done it?

OP posts:

Am I being unreasonable?

330 votes. Final results.

POLL
You are being unreasonable
90%
You are NOT being unreasonable
10%
isthewashingdryyet · 06/01/2024 14:01

Please don’t, it is solid gold and one of the best there is. You will never opt back in and your future self will never forgive you

there is always a a way to find free things to do, that don’t compromise your future

and the drop in National Insurance this month will mean you have more money at the end of this month

Emmadaily · 06/01/2024 14:06

Absolutely agree with PP
I really would not give up the pension
Like PP said its solid gold

Goodlard · 06/01/2024 14:06

Please realise you will also lose any death benefit.

Really consider everything before making a decision.

PinkEasterbunny · 06/01/2024 14:09

I nearly opted out of the Local Govt pension when I was young and skint. I’m so glad I remained in, my projected monthly pension figure is approx 50% of my current salary, which will be a godsend in retirement

Babyroobs · 06/01/2024 14:10

NHs pension scheme is one of the best around. it would be madness to opt out. plus any benefits like Universal creidt are calculated after pension contributions come out, so if you do claim UC if you got paid more earnings you would just be penalised that way too. Your dd will thank you more when she is older and you get a huge lump sum pension payout and can help her out then.

Beamur · 06/01/2024 14:10

I wouldn't consider doing this.
I can see why you would want to do more with your child now, but ditching your pension would be unwise.
What other options are there? Can you increase your earnings?

Themountainwithsnowonit · 06/01/2024 14:11

Don't do it. You'll lose the employer contribution too.

Believe me, when you come to retire you'll be so grateful to have it. And being blunt, if the worst happened to you, the death in service benefits will be more important to your child than days out now.

ScierraDoll · 06/01/2024 14:15

Absolutely not a good idea. Things may be hard now but they will be a damp site worse in retirement without a pension. It may seem a long time away but believe me it comes round sooner than you think and opting out is a decision you will live to regret. Can you not find a way of reducing your outgoings. I'm sure the good people on here will give advice as to how to achieve this

ColleenDonaghy · 06/01/2024 14:15

Please please please don't opt out.

gingercat02 · 06/01/2024 14:17

Really don't unless you can't survive without it. It's one of the best pensions out there.
Depending on your band, the NI reduction will be a bit more each month.
BBC News - National Insurance calculator
www.bbc.co.uk/news/explainers-63635185
I'm 55 in a couple of months. The thought of my pension is what keeps me going in the dark days

LovedmyRaleighChopper · 06/01/2024 14:18

Join the NHS pensions chat on fb. Lot of people in your situation there with good advice to give.

TheKeatingFive · 06/01/2024 14:19

You'd be a total idiot to do this. Please don't.

What else can you do to reduce out goings or increase money coming in.

KCSIE · 06/01/2024 14:22

Can we help you reduce your other current outgoings or make cutbacks elsewhere instead, so you have a bit of change for a day or out or so at the end of the month?

It is really not a good idea to opt out of your NHS pension.

Babyroobs · 06/01/2024 14:23

gingercat02 · 06/01/2024 14:17

Really don't unless you can't survive without it. It's one of the best pensions out there.
Depending on your band, the NI reduction will be a bit more each month.
BBC News - National Insurance calculator
www.bbc.co.uk/news/explainers-63635185
I'm 55 in a couple of months. The thought of my pension is what keeps me going in the dark days

Me too. i just received my NHS pension forcast ( am 55) and was pleasantly surprised that even after part time work in the NHS/ gaps where I worked abroad and not having worked in the NHS for the past five years it is still showing a decent lump sum and an annual figure better than I had anticipated. it really is one of the best schemes around.

EdgarsTale · 06/01/2024 14:24

No, it would be a really stupid thing to do. You won’t have the full £350 in your pocket either because of deductions. Keep the pension. It’s so important for later life.

menopausalmare · 06/01/2024 14:25

Don't! She won't remember them, take her out when you're a richer pensioner.

SayNoToDoorToDoor · 06/01/2024 14:26

Gosh no please don’t do this. That pension will be invaluable and remember you’re getting extra money from your employer too for later in life. You’re going to need it then.

Can we help you look at other options to make life a little easier?

Tacotortoise · 06/01/2024 14:27

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Pungifries · 06/01/2024 14:27

Are you a nurse?

could you drop a shift a week on NHS and do agency? X

Ginmonkeyagain · 06/01/2024 14:28

Don't do this. You are giving up free money from your employer and the government. Opting out of the NHS pension scheme in your 30s will possibly be the worse financial decision you ever make.

Reallybadidea · 06/01/2024 14:29

Also bear in mind that the £350 is before tax and national insurance because you're contributions are salary sacrificed.

Depending on whether (and by how much) your gross salary is above the level for higher rate tax, you may actually only receive as little as £200 in your pay.

Dacadactyl · 06/01/2024 14:29

Don't do it. Stay in the pension. Cut back EVERYWHERE else first.

Go onto money saving expert forums and post a statement of affairs on there. People will be able to tell you where and joy to cut back immediately.

Don't do travelling etc with little one. Do free days out instead. When things get better financially (and they will) get a national trust membership.

user09767 · 06/01/2024 14:29

Agree with previous post it would have to be a desperate and hopefully temporary situation to opt out of that kind of pension.

It would also increase your tax/NI so you would not gain the full amount in your wage.

I'm in a different government pension. I believe we have the option to reduce our pension (the organisation would also reduce what they pay in). Is this a possible option?

Sorry your struggling OP it's awful for many at the minute

headcheffer · 06/01/2024 14:32

This reply has been deleted

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This is just catty and nasty.

mottytotty · 06/01/2024 14:34

Don’t do it!

What will your pension be after retirement, out of interest?

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