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Original poster

NHS pension help

60 replies

Ollivander84 · 28/10/2017 15:06

So I'm 33 with no pension (don't shout at once)
I'm now in the NHS one. But I have a problem Sad from 2018 my contribution goes up to 3% which I can't afford (I've been on a pay freeze forever and I'm band 3) then 2019 up to 5%

So my choices are
Stay in it and be (v) skint and unable to pay more off debt
Exit out of it, do nothing
Exit out of it, save 1% a month - but everyone says don't save if you have debt

Help? I'm clueless about pensions!

OP posts:
Ta1kinPeece · 28/10/2017 17:35

The NHS pension is a DB scheme
you'd be mad to opt out of it.

Find a way to manage your debt (stuff like the standing order trick)
and stay in the pension

Babyroobs · 28/10/2017 18:45

Don't exit out of it ! The NHS is one of the best schemes around and they match what you put in I think. I would stay in and be skint. Better to be skint when you are young and healthy than when you are elderly and frail.

Original poster
Ollivander84 · 28/10/2017 19:44

When I say be skint I mean accumulate more debt - there's no more money! After bills I have £400 a month to live on, when it increases that means I'll be down to £200 which isn't feasible

OP posts:
titchy · 28/10/2017 19:53

You won't be £200 a month worse off at all. How are you working that out? You'd have to be taking home over £4000 a month to be that much worse off!

Original poster
Ollivander84 · 28/10/2017 19:57

titchy - sorry I probably haven't written that right! Ok so after my bills have come out (this is the 1% pension out my pay) I have £400 a month to live off
That's why I'm saying I can't afford it if it goes up to 3-5%. There's absolutely nothing I can cut back on, it's purely essential bills like debt payment, water, gas etc. I'm being stung on my car insurance but that's after two accidents in a short space of time and it's the cheapest I could get (£72 a month)

OP posts:
WreckTangled · 28/10/2017 19:58

I’m band 3 too and, although I only work 28 a week term time, my pension contributions are only about £50 a month and that’s 5.6%. I’m sure it won’t be that much.

Viviennemary · 28/10/2017 20:00

Your sums are wrong. How are you going to be £200 worse off a month if your contribitions are 3%. Unless you're earning a fortune which I take it you're not. Do you mean your contributions are going up by 3% or that your contributions are going up to 3%. If you have a friend who is fiancially savvy then I'd have a word with them as to what they think your contributions will be. Can't see how you are coming up with the £200 figure.

8FencingWire · 28/10/2017 20:01

Stay on and do an extra shift or two a month. That's what I do. It's not easy, but I got used to it now.

Original poster
Ollivander84 · 28/10/2017 20:03

I'm down £125 this month - so that's 1% contribution

OP posts:
ChessieFL · 28/10/2017 20:03

Are you sure you’re in the NHS Pension Scheme? The minimum contribution to that is 5% and it only changes if your salary increases and you move into a different pensionable pay band. From what you have said About your contributions I think you might be in a different workplace pension that’s been set up for automatic enrolment. Anyway, you should stay in the scheme if at all possible as you won’t get the employer contributions into anything else, plus you get tax relief on your contributions so if you opt out you won’t get back the full amount that you’re paying.

Original poster
Ollivander84 · 28/10/2017 20:04

8Fencing - unfortunately I can't do overtime as I'm on a shift pattern that's incredibly tricky. For instance this week I work M/T/W get Thursday off then back in F/S/S/M. I'm also chronically ill

OP posts:
ourkidmolly · 28/10/2017 20:04

Your posts don’t make sense at all? What pension scheme are you actually in?

Original poster
Ollivander84 · 28/10/2017 20:06

Chessie - yep! I got a letter it says "NHS Pension scheme" transitional auto enrolment
Then terms on the back (shortened for ease of typing)
You pay 1%, we pay 1%
From April 2018 you pay 3%, we pay 2%
From April 2019 you pay 5%, we pay 3%
(Proposed dates subject to parliament approval)

OP posts:
xyzandabc · 28/10/2017 20:07

If the difference between 1% and 3% is £200 per month that means 2% = £200.
If 2% = £200 then 100% = 200*50= £10000.

I'm pretty sure you're not on £10k per month.

Your sums must be wrong somewhere. Are you sure its not £200 per year increase? Rather than per month.

Original poster
Ollivander84 · 28/10/2017 20:08

ourkid- cross posted

I'll start again
I've just been auto enrolled onto the pension scheme which is taking £125 per month, at 1% of my pay
In April it will be going up to 3%. I can't afford this, as at present I am left with £400 after bills to live on

Should I leave now, or carry on with the 1% until April then leave?

OP posts:
Original poster
Ollivander84 · 28/10/2017 20:09

Apologies for any confusion, I threw the £200 in there as a random number to sort of show why it wasn't feasible. I've checked my bank statements and 1% is showing as £125 per month off my pay

OP posts:
Nan0second · 28/10/2017 20:11

Your sums are wrong. How many hours do you work and where on the payscale are you?

allinclusive · 28/10/2017 20:12

Please check your pay statement. If you are on 1250 per month your contribution should be £12.50. There will be other deductions such as NI.

Original poster
Ollivander84 · 28/10/2017 20:12

Nan0 - that £125 is just from checking my pay into my account as no pay slip, but I earn the same amount every month
Top of band 3 plus 25% anti social hours (I pay a student loan out my wages too)

OP posts:
SpinnerDryer · 28/10/2017 20:13

3% of £1300 would be £39, for example.

It sounds as if they are taking too much.

Ta1kinPeece · 28/10/2017 20:13

Hang on,
Auto-enrollment 1% pensions are NOT the NHS scheme.
You need to talk to your HR department URGENTLY

something souds VERY odd here

WreckTangled · 28/10/2017 20:13

But £125 is 1% of £12500 you can’t be earning that much.

ChessieFL · 28/10/2017 20:14

You are misunderstanding something somewhere! If your contribution is £125 per month and IF that is 1% that makes your salary £12500 per month! I doubt that somehow.

You are not paying 1%. Go onto the NHS pensions website and look for the section on the cost of the scheme, and find which pay band you were in. You will be paying at least 5%.

This means that your contributions won’t rise next year, unless your pay rises and puts you into a different pensionable pay band.

Viviennemary · 28/10/2017 20:14

1% contribtion isn't £125 a month unless you are a top executive in the NHS and wouldn't be worrying over this anyway. Your sums are wrong. I don't know what you earn so can't say what 1% and 3% of your wages are. But it's not £125 a month or even £200 a month.

An extra shift or two was what I was going to suggest instead of coming out of the scheme but I see that's not possible.

xyzandabc · 28/10/2017 20:14

Cross posted with your updates. Is the £125 definitely all pension contribution?

Even with basic maths if 1% is £125, then 100% is £12500. You are not earning £12500 per month so £125 is not a 1% contribution.

Could the £125 be made up of pension plus tax plus ni?

Or if £125 really is your pension contribution, then it's currently much more than 1% and actually will be reducing under the new scheme.

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