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Original poster

Worried about the future....

54 replies

NoddyfromToytown · 21/03/2024 15:25

Ok I'll preface this by saying I have A LOT of debt. It's manageable but it's massive - a lot of it is my own fault due to a spending addiction (reasons were there) but some due to a relationship breakdown and issues with renovating my home. Not to mention the cost of living now that I'm supporting a family-sized home as a single person (no kids and moving is not an option I'd consider).

Managed to sort things out a little by shifting stuff round and currently I should have around £750 a month left after all food, bills, etc. I do admit that I like nice things, nice holidays, etc. and am accustomed to my lifestyle so trying to cut back on those is HARD despite however much I try.

BUT... I don't have a pension. I'm NHS as well and I could cry that I've thrown so many years away. I wasn't as worried as I might be at first given that I own my own home and will have a small inheritance in later life, but with that extra cash available I thought now is the time to get back into it (I'm 39, not planning on retiring until at least late 60s and have good career progression expectations).

I checked and my pension contributions are £446 a month! At first I thought, ok then, still £300 a month spare... but my mortgage is due for renewal shortly and I expect the payments will eat that up given the higher interest rates! Leaving me with literally zero money for emergencies, Christmas, birthdays, etc.

I just wish the NHS would allow us to set our own pension contributions! So what do I do? Just try and save as much as possible? Overpay my loans/mortgage? Get a sugar daddy? Join OnlyFans? 😂

HELP!

OP posts:
Mossstitch · 21/03/2024 15:37

Have you taken into account that pension is taken out prior to tax?
I didn't start paying in until I was 46 but have taken it early and do bank shifts and think it is worth paying into. Basically its like me being paid one days work a week now plus a lump sum so you don't need to work as much which by the time your in your 60s with less energy is a great benefit. Perhaps wait until your mortgage is redone so that you know exactly what money you have available.

Original poster
NoddyfromToytown · 21/03/2024 15:40

Mossstitch · 21/03/2024 15:37

Have you taken into account that pension is taken out prior to tax?
I didn't start paying in until I was 46 but have taken it early and do bank shifts and think it is worth paying into. Basically its like me being paid one days work a week now plus a lump sum so you don't need to work as much which by the time your in your 60s with less energy is a great benefit. Perhaps wait until your mortgage is redone so that you know exactly what money you have available.

That was with running it through listentotaxman.com - so my take-home pay reduced by over £400 with adding on the pension contributions! I always thought I'd be in a lovely double-income no kids family by now with more than enough money to spare! I'm either too fussy or the right one for me simply doesn't exist...

OP posts:
PaminaMozart · 21/03/2024 15:43

Scrimp and save to fund your pension. Your future self will thank you.

Really, really cut your expenses to the bone. Holidays and nice things are not worth mortgaging your future for.

Get a lodger, or two, to bring in extra cash.

Motnight · 21/03/2024 15:50

If you aren't willing to move house and thus cut mortgage payments down I don't think that there's much you can do to be honest Op. You've made your decision already.

Original poster
NoddyfromToytown · 21/03/2024 16:01

@PaminaMozart I have ASD and my home is my 'safe space' - there's no way I'd share it with a stranger or two. Regardless, there's little call for single professional rooms where I live.

@Motnight I've spent thousands getting this house the way that I want it and tbh wouldn't save much money given how much house prices have risen since I bought it

OP posts:
TheDefiant · 21/03/2024 17:25

Well you are immediately saying no to lots of sensible suggestions.

You've already made a list of things you won't consider doing.

There's really not much left.

Get a second job?

Marmut · 21/03/2024 17:31

I didn't start contributing to pension until I was 35. It is doable to catch up, especially you are on NHS pension which is quite generous. However, you do need to work out your budget and stick to it. Did you have a plan on when and how you are going to pay off your debt? Once you reduce your debt, you will have lots to spare.

westisbest1982 · 21/03/2024 17:53

Can you get a job within the NHS that pays more?

If not and the debt is something you’ll be paying off for a very long time, then I would leave for another job where you can adjust your pension contributions.

Kitkat1523 · 21/03/2024 18:12

its a no brainer to pay into nhs pension ….I’m guessing you are somewhere on band 7? …. I was top band 7 when I retired and returned 2 years ago and was paying around about same as you ……im 59 now and I work 2 days a week now and still bring home more or less the same pay as when I worked full time…..just pay it

PaminaMozart · 21/03/2024 18:41

Leaving the NHS to be able to invest less in an inferior pension scheme would be a @seriously BAD idea...

westisbest1982 · 21/03/2024 18:47

PaminaMozart · 21/03/2024 18:41

Leaving the NHS to be able to invest less in an inferior pension scheme would be a @seriously BAD idea...

If she opts in, she’ll have no disposable income, which to me sounds miserable. I get the impression she won’t be able to clear her debt quickly.

EdgarsTale · 21/03/2024 18:52

I can’t believe anyone opts out of the NHS pension, it’s such a good scheme. You really need to opt back in asap.

Can you do 50% contributions? I’m in the LGPS & we can choose to only pay in 50%. It’s better than nothing, but you’re literally throwing money away by not joining your pension. Also, you won’t get the full £400 back in your pay due to tax.

Kitkat1523 · 21/03/2024 19:10

EdgarsTale · 21/03/2024 18:52

I can’t believe anyone opts out of the NHS pension, it’s such a good scheme. You really need to opt back in asap.

Can you do 50% contributions? I’m in the LGPS & we can choose to only pay in 50%. It’s better than nothing, but you’re literally throwing money away by not joining your pension. Also, you won’t get the full £400 back in your pay due to tax.

No..,you pay it…or you don’t….and the percentage you pay is dependant on your pay…..so higher earners pay a much higher percentage

Original poster
NoddyfromToytown · 21/03/2024 19:21

@TheDefiant how is it sensible suggesting that someone with ASD who sees their home as a safe space invites a stranger to live with them? I already have a second job but it’s weather dependent so hoping hours increase come spring and summer

@Marmut @westisbest1982 my debts are two loans with fairly high interest rates (I had another property with a mortgage so getting credit was difficult with two but that’s sold now - for a loss). I’m going to try and consolidate as much as I can into my mortgage each time but also try and apply for lower interest loans to switch to as my credit score improves

@Kitkat1523 I’ve just got into a Band 8a but despite my wages hardly going up it’s kicked me into the next pension bracket which is a big part of the issue

I’m already applying for higher paid roles but lack experience in some areas so am also taking additional qualifications but they won’t be finished for 18 months.

OP posts:
PaminaMozart · 21/03/2024 19:22

westisbest1982 · 21/03/2024 18:47

If she opts in, she’ll have no disposable income, which to me sounds miserable. I get the impression she won’t be able to clear her debt quickly.

Show quote history

Investing in her NHS pension is WAY more valuable than clearing her debts quickly.

Okay, she may be miserable for a while , but she'll be chipping away at her debts, slowly but surely, and in the meantime her pension will grow exponentially.

And I don't see why she would have to be miserable. There are plenty of rewarding things to do that cost very little. And I think she said that her house is just how she likes it, i.e. not a money pit.

It really is the proverbial no-brainer.

surew · 21/03/2024 19:28

I would anything and everything to start paying into your NHS pension. Remember that how ever much you contribute, the employer contribution is usually higher. By opting out you are effectively saying no to your employer paying into your pension.

Instead of seeing reasons why you can't join the NHS pension, try to think of your pension as a non negotiable expense, then cut back on those "nice things" you enjoy.

Remember that with 5 years service at band 8 you will get a substantial pay rise.

westisbest1982 · 21/03/2024 19:37

Instead of seeing reasons why you can't join the NHS pension, try to think of your pension as a non negotiable expense, then cut back on those "nice things" you enjoy.

But when her mortgage repayments go up, there won’t be any nice things to cut back on, if she opts in. OP also has no savings and won’t be able to save any if she starts up her pension, which is a really vulnerable place to be in.

Kitkat1523 · 21/03/2024 19:44

I work with a lady who is similar age to me…late 50s…she opted out of nhs pension when bringing up her kids…..she’s back in it now but can’t take her pension without a penalty til she’s 65 and even then will be getting less than half that I get…..which I claimed in full at 57 ( same as the majority of my colleagues)…..she bitterly regrets it…… don’t be that person OP

Original poster
NoddyfromToytown · 21/03/2024 20:33

surew · 21/03/2024 19:28

I would anything and everything to start paying into your NHS pension. Remember that how ever much you contribute, the employer contribution is usually higher. By opting out you are effectively saying no to your employer paying into your pension.

Instead of seeing reasons why you can't join the NHS pension, try to think of your pension as a non negotiable expense, then cut back on those "nice things" you enjoy.

Remember that with 5 years service at band 8 you will get a substantial pay rise.

I’ve already done 2.5 years as a secondment so I have another 2.5 to go but I’ve been shortlisted for an 8b before (obviously didn’t get it) so am just going to apply for everything out there!

@westisbest1982 that’s exactly what it is, my quality of life will be zilch if I did that. Yes I’d have a pension but I’d rather live now

OP posts:
MissLucyEyelesbarrow · 21/03/2024 20:59

You can't afford your current lifestyle, so you are going to have to compromise, or you risk losing your house, given that your mortgage payments are going up and you have big debts and no contingency.

You are either going to have to generate some more income from your house, or downsize, or let it out and rent somewhere smaller until you have built up some savings. We get that you don't want to do those things. But they are better than losing your home to repossession.

NHStoPrivate · 21/03/2024 21:03

I don't think previous posters were all suggesting that you take a lodger or similar; I think they wee suggesting that you buy a smaller house.

TheDefiant · 21/03/2024 21:20

You are putting a whole range of restrictions on yourself/your situation. It's almost like you are looking for permission to stop paying into your pension.

That would be stupid.

You also only mentioned second job/better job after they were suggested to you. Convenient.

I understand that sharing your home is not a favourite option, but surely you could pick someone you could live with? You can earn around £7,000 Pa tax free through lodging.

You'll be out at work lots and then in summer you'll be out in increasing hours at your second job. You'll be asleep sometimes when at home so the actual time spent with a potential lodger is low.

Set rules, choose wisely. Earn money. If you can be convinced to go the lodger route.

Oh and BTW consolidating your debt into your mortgage is a bad idea.

Coldupnorth7 · 21/03/2024 21:23

Go to a proper debt charity and get the loan repayments sorted out. Definitely don't consolidate the loans without proper advice.

westisbest1982 · 21/03/2024 21:32

You are putting a whole range of restrictions on yourself/your situation. It's almost like you are looking for permission to stop paying into your pension.

That’s a bit unkind. She has ASD, a ton of debt she has to pay off, and no partner to share the financial burden of running a house with. She has a second job, so I think she’s doing the best she can.

TheDefiant · 21/03/2024 21:48

I disagree it's unkind. Saying all that and then adding value judgements or name calling would be unkind.

My sense is the OP is looking for permission to stop her pension payments. In one of the later posts she even says "I'd rather live now" in response to some advice. 🤷🏼‍♀️

OP does have challenges like you mention @westisbest1982 but is ALSO adding additional restrictions. Short of something amazing happening (lottery win, massive pay-rise, falling for a wealthy partner) some tough choices are going to need to be made.

People in equally challenging circumstances make really difficult choices every day.