Opting out of NHS pension

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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?

Just don’t. I work for the nhs and the nhs employer contribution (ie the FREE MONEY) is 12.75% of my salary. Yours may be different % of course, but if you opt out the FREE MONEY stops.

Same as everyone else: don't. I've been in a civil service pension since I was 19, 39 now. Having had friends at work who have retired/are very close to it I really understand the value. I suppose at a push you could see if you could reduce your contributions slightly? But this type of pension is like gold dust, stay in it.

My husband opted out of his pension contributions for a couple of months each year because it was massively impacting his tax threshold (yeah, I know, first world problems). Should be fairly straightforward and a lot of medical professionals do it. However, I do remember what an utter, utter pain in the arse it was to arrange, because it involved getting in touch with Capita, who administrate the pensions. There were mistakes, missing contributions, delays in getting statements, you name it.

On top of all the strong financial reasons to stay in that people have detailed in this thread, I’d advise against. Your future security, plus having to deal with Capita, is a hell of a price to pay for that extra cash.

Agree with others. Don’t do it.

Do you access all the subsidised activities and discounts.

eg
blue light card

This one gives discounted tickets for concerts and days out.
https://www.ticketsforgood.org/

This is a ballot system for tickets
https://www.concertsforcarers.org.uk/

Sorry if you know about these already!

Wow!

Have a chat to a union rep. They often know about support employers offer and some organisations of that size have members clubs where for a small amount of money you get access to loads of free things. Sin up to money supermarket - sometimes they give a heads up on free days out offers. Have a look at The Sun and cereal packets for any tokens they do. There are ways without sacrificing pension.

If you are a low earner then the NHS pension scheme is phenomenal and has low contributions.

If you are in the highest contribution band then the NHS pension is not necessarily great value, and has been easily outperformed by a number of investment strategies in the last few years. But that would require a sound understanding of risk, pensions, savings and investments and doesn’t sound like something that you are interested in.

Do not opt out of your pension. If your contributions are only £350/month then you’re doing very well out of it. If that money were to go into your payslip then you wouldn’t be getting any tax relief on it so it would be more like £220-£280. Your DC will thank you for being financially independent in your old age (as will you) rather than a few extra holidays.

Late to the party, but don't give up your pension. Have a friend who did this so she could subsidise her adult DD. Whole different thread, but she is now on verge of retirement and is buggered financially wise

I don't understand why everyone says how amazing the NHS pension is. My forecast is £1600 annual.
However I wouldn't opt out.

Absolutely not

Because its better than you'd get elsewhere?

@cutlery the old scheme was good fair enough not so much anymore. And I have to disagree about it being better than anywhere else.

Hi op. I work for the NHS. I am a single mother of 2 and always short of cash. Please don't opt out it is a really bad decision overall and desperate as I often am, I never would. Especially if you are in tbe 1995 or 2008 scheme (which are better than the 2015 scheme) and you would have to rejoin under 2015. I opted out whilst on mat leave and it was a really bad decision.
Please lot at any other ways you can economise, don't find the money this way.

And I have to disagree about it being better than anywhere else.

What other pension schemes do you think are better?

Absolutely no need for this. If you don’t like a thread scroll on by.

How much do you earn and how long have you worked for the NHS? I suspect you are misunderstanding it

I agree completely that the old schemes were miles better for everyone. The current pension scheme remains good for most, but quite a few higher earners in some specific circumstances would do better to put their money elsewhere (obviously the specific circumstances are to do with other wealth, investment strategies, health and inheritance planning).

Don’t do this.

you wouldn’t see £350 either you would get a fraction of this due to how deductions are worked out.

Should add that I’m personally very interested in personal finance and investments, so I did a deep dive into the NHS pension schemes (and then my husband left the NHS anyway, hooray).

Yes, this. Don’t opt out. It doesn’t sound like you have any well thought out alternatives and you wouldn’t be doing you or your DC any favours by having a financially insecure future.

Nope not misunderstanding. Annual pension currently is £1606 after 10.5 years working both full and part time as a band 5

I'm in no way financially inclined but a quick google places teachers, police, armed forces and civil servants as being the best for pension schemes.

Do not opt out. It’s worth a lot more than the money you’d see in your pay packet I you did opt out.

I have, temporarily whilst we have sky high nursery bills. I plan to opt back in when my DD's free hours kick in in September.

When I was your age and similar circumstances, had I had the choice to opt out I would have likely taken it. At the age I am now, with access to my pension finally coming into view I am beyond grateful opting out was not allowed at the time.

Seriously, dont do it.

Really don't. A colleague did it just to get her through a tough spell. The tough spell continued and before she knew it she was mid forties with no contributions. In the meantime she'd had several long haul holidays which I could not get my head around.