Opting out of NHS Pension for a year

[Cyclewidow46]

Since my break up from ex-husband I have built up credit card debt of £6000.

I am thinking about opting out of the NHS pension for the next 12 months so I could use the money that would have been my pension contributions to pay towards my credit card debt.

In our divorce settlement I was awarded a substantial amount from his pension that is now in my own private pension so the NHS pension is not my only one.

Has anybody ever left the pension and then rejoined?

how much did you get off you ExDH?

Also, how old are you?

Thank you for your reply. I received just over £500,000 which was put into my own private pension and I've just turned 51.

When I'm 55 I want to draw out a lump sum from the private pension to use towards a mortgage to buy my own place as I'm currently renting. By paying off the credit cards my credit rating would increase to improve my chances of getting a mortgage.

It's a shame to opt out of a good pension. If the credit card isn't 0% have you considered trying to consolidate it with a personal loan instead. I believe 9% in pretty standard. Pay it off over 4 years by living a little more frugally, but still pay into your pension.

How many years membership do you have? Do you have any idea how much per annum you’ve accrued to date per year?

I can see how this may seem to be a good idea, but my fear is that once you take a break, you won’t go back in (then you’re saving for a deposit, then you’re ... etc etc) That would prove the most expensive decision you ever make.

Furthermore the majority of the pension value comes from your employer, none of which you will see. Your saving from not paying will also pay Tax and NI. Unless you are desperate it’s not a great way of getting more money.

One thing that would sway me from ‘don’t do it’ is if you are getting near the life time allowance, but that seems less likely from what you describe.

It really depends whether you in the old pension or new. If you're in the fabulous old scheme I think you'll rejoin in the new, which is nowhere near as good.
I'd check that out first.

Thanks everyone for your replies.

I think I'm going to stay in and try and pay off credit cards over next 4 years. Coming out just seemed the quickest option.

I wouldnt. As someone said get a short loan.

oh, am so glad you aren't going to stop your NHS pension.
£6000 on a CC , as long as you pay on time etc, will not have an efect on motgage, in fact it may be favourable as it shows "responsible borrowing".
If you are paying interest on your CC-what is the rate, how fast can you pay it off?
you could look at 0% balance transfer credit cards, be aware they have a small fee to set up, but it usually is way less then the interest you would be paying.
Have a look at moneysavingexpert.com for the best deals.
There are cheap loans available too, again, MSE have the best ones.

ooh, excuse the typo's !