Giving up NHS pension

[Freshstarts249]

I’m relatively new to the NHS. I’m mid thirties and have zero pension elsewhere.
Im considering a new job opportunity but am suddenly very aware that my contributions into a normal pension pot for the next 30 years will leave me with next to nothing in retirement. Whereas if I stay in the nhs I’ll have a decent pension.

would I be crazy to leave? Or crazy to stay just for pension in 30 years when who knows what opportunities I could have before then?

My current and previous employer both pay 12%, so don't write off private sector on the basis that they only pay minimum. That's plus my 6% so 18% total and I can make additional contributions too. Obviously that doesn't come close to public sector, however salaries are typically higher in private sector too.

I don't think you should only look at the pension to decide though. Work out what you want to do, you have a lot of years ahead of you in your career so make sure you're doing something you enjoy.

Who knows, but let’s hope so.

This is on top of your state pension, and realistically you will be putting in more than you do on your current wage once your salary rises, mortgage paid off or whatever. You sound keen to progress, how high could your salary go?

My role is in a team where the only way I could progress is to do 3 years at uni to become a band 5, but that profession doesn’t interest me at all. There’s honestly no progression for me within my role.

id happily do the band 6 role within my team, but that would require 3 years training for the band 5 role I have no interest in, then a further year at uni for the masters to do the band 6. Its not possible for me.

Even if I considered a move to a different team/area I’d need to go to uni to progress so I’m pretty stuck in the NHS.

Probably not much higher than it is now. I have no qualifications, best I could hope for is a team leader somewhere for a few grand more I reckon.

There are lots of pension calculator websites out there that could help you understand what 8% contributions might amount to after 30 odd years. Yes it would be much less than the NHS pension but it wouldn't be zero.

I can't see you wanting to stay in a job you don't like for 30 years just for the pension - is that really the best way to spend your limited time on Earth?

As you say, you can always move later in your career to a job with a better pension if you like.

It's a mistake to think of a pension as a trifling aside to the job. Any job needs to be considered for its pension benefits. Of course work should be rewarding day to day but ultimately and firstly it needs to pay for the big life stuff such as the costs of home, family and retirement.

I get this, but also can’t allow it to dictate my choice for the next 30 years. It’s a tough one.

It isn't a tough one really. This is said with the benefit of age.

Work is a means to an end. Yes you don't want to be completely miserable but basically most do what they need to to get by and an NHS pension is incredibly valuable.

dont waste 30 years of your life being unfulfilled for the sake of a pension. Yes you should plan financially for your retirement but you also need to live now! What if you don’t make it to retirement age? would you regret staying in the NHS?

you will be able to find something you enjoy and still build a pension pot, many many people don’t work for the NHS and they all manage…

I think for me, the idea that I’d be holding myself back for the next 30 years, just for a pension, is what makes it tough. I’m not unhappy at work but I want to progress and learn and I can not do that here.

My parents did not have a pension and both manage just fine with state pension. Although there’s no guarantee that will still be around in 30 years. They are also not in the best health so even if they had a generous pension they would not really benefit from it as they don’t really get out and about. I’d hate to live my life as one big build up to pension age to then find I can’t even enjoy it.

This is what I’m thinking to. But then I also assume most people have already got a decent pension pot by my age whereas I’ve got nothing and won’t be able to contribute a significant amount any time soon (if ever)

Maybe I will return to the NHS in a few years. But I think for now I need more flexibility in my work schedule and the chance to see where the new job could take me.

Pensions are important but not as important as living a life you enjoy.
have you thought about maybe looking at the civil service?

My neighbour actually left the NHS to work in a school about 10 years ago and wishes she was still in the NHS (the pension being part of the reason) but she's in her late 50's

I'm a Police Officer and the pension is one of the perks of the job (there's very few other perks trust me lol)
Whenever I think of leaving, the fact that its a secure job coupled with the pension keeps me here, but I have a mortgage, child etc so different stage of life to you. Plus I'm 41 so only another 19 years to go (Police retire at 60, used to be 55 in the good old days)

BUT no one gets out of here alive so don't waste years in a job that makes you unhappy

No you won't be crazy to leave. I worked in the NHS for more than 25 years and wish I'd left sooner, and went after other opportunities more. I still have nightmares about it now sometimes!

I have a deferred NHS pension. If I got a job with a higher salary I'd put that towards a more expensive house to create equity when older.

I know colleagues who have died before pension age, so was it worth it staying in an unhappy role for a good pension? Obviously no, not for them anyway. I'd put happiness first. Part of that made me realise that I was unhappy in the NHS, and it was getting worse.

How are you on £33k on a Band 4?

Band 4 is £25,147 - £27,596.

London

If I was unhappy here it would be an easier decision I suppose. I’m comfortable.

Okay, got ya.

My answer is no, you wouldn't be crazy to leave. 30 years is a long time to plan ahead, even how possible is it to do that. A lot can happen/change.

The NHS would probably allow a person to sit in the same role for 30+ years with no advancement. But I wouldn't stay somewhere just for the pension.

So why would the new job be more exciting? That’s the real crux of the matter.

OP, can you gain skills and r Prince without going full on Uni? Not primarily be money but because you already sound bored and unchallenged. You can’t go on like that for 30 years!

There must be some route or opportunity that gives you professional development?

It’s more varied, and the main thing- more flexible.

Couldn’t you stay in the NHS but change roles? It would be odd to stay in one role forever anyway.

What are you doing now and what are you interested in?
As a band 4 it’s probably easier to switch from say mental health to physical health.

There would still be the progression issue though. Band 5 jobs require a professional degree except maybe in admin roles.

We actively put people through uni alongside their job if they want to progress. Keep an eye out for a role you fancy, get your foot in the door of that department and then push for support to do qualifications to support that.

The NHS is theoretically designed these days to allow anyone to move up, you just need to find something that excites you.