Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
Work

Chat with other users about all things related to working life on our Work forum.

Original poster

Has anyone opted out of their nhs pension for financial reasons?

31 replies

Cupcake00 · 21/08/2023 08:50

I have just gone up a great as a nurse in the NHS and now working full time. Therefore, my student loan has more than doubled. I'm a single parent with a mortgage and will be paying off another loan for about 8 years onto as I had to take out a loan after my divorce.
My student loan is alot and its so disheartening as I have worked so hard for my degree on my own with 3 children and now gone up a grade to become more financially straight.
We haven't had holidays etc and I scraped by. I was looking forward just to being able to live and hopefully save for a holiday next year. Now I can see almost 300 pounds coming out for my student loan. I'm already paying a loan of 500 a month aswell as a mortgage and bills.
I'm considering opting out of my pension as this is about 370 a month. However I am worried as I am in my 40's. I will have a mortgage for another 22 years.
People say how good it is to have an nhs pension.
Not sure what to do? Has anyone ever done this?

OP posts:
Mouthfulofquiz · 21/08/2023 09:11

I wouldn’t opt out of it if I were you, as hard as that sounds. I’ve considered it many times as I pay a similar amount, it would make a big difference to me. Hang on in there. Are you taking home more money at the end of the month all things considered?

buzzlightyearsgloves · 21/08/2023 09:12

I've opted out for my maternity leave. I really, really didn't want to but didn't feel I had much choice financially. It's so tricky isn't it. Remember you will pay slightly more tax if you do opt out.

Original poster
Cupcake00 · 21/08/2023 09:59

Thankyou for your messages.
Yes, I am better off. I haven't been in the nhs long. I did my nurse training in 2014. Worked part time when qualified, so not really put a huge amount into my pension.
I don't really understand it. I was thinking about opting out for a couple of years. How would that impact?
I know we have to do what's right for now and financially we have to live, like you said, sometimes no choice.
I can still get by but no nice extras, which is disheartening as I have worked so hard and never had the extras. I actually want to have some money to enjoy my time off. Take a holiday. See a show. Not worry at Christmas or birthdays. I'm going to try to bank to get some paid off. I was just considering it for a couple of years. My eldest has moved out, my middle dc is now 18 and my youngest leaves school next year (unless she stays in education).

OP posts:
Willmafrockfit · 21/08/2023 10:02

a colleague did this but i think i assume it was just temporary

bank work seems a good option op

Yea2023 · 21/08/2023 10:13

Is there anyway that the loan can be refinanced?

Prob re pension is I believe if you don’t contribute your employer won’t either…

Also, your tax and possibly student loan will increase so you won’t save a straight £370.

Stopping pension should be very last resort IMO and only if you literally cannot pay housing costs.

Original poster
Cupcake00 · 21/08/2023 10:15

I might call pensions and see what they say. In the meantime keep doing the bank shifts. A bit tired I am. Was hoping for a miracle. Its really difficult on 1 wage.

OP posts:
hellsbells99 · 21/08/2023 10:19

Are you sure your student loan repayments are correct? I think you would need to be earning over £5000 a month for that repayment? I may be wrong

Original poster
Cupcake00 · 21/08/2023 10:33

It's 9% of your income. I owe 30k.
I can't change the loan or payments.
I remortgage in 3 years and was hoping to settle the loan (25k) but not sure I earn enough to put that on top of my mortgage. I'm just hoping really.

OP posts:
SadBut · 21/08/2023 11:19

I "temporarily" stopped paying into my NHS pension when kids were born
I needed the money to bring them up and family life
Fast forward 18 years and OP, I'm fooked
I would be able to plan some kind of semi-retirement now. Instead I'm increasing my hours just to get by
Don't do it OP

Motnight · 21/08/2023 11:20

Don't do it, Op.

snowflakeinastorm · 21/08/2023 11:25

I would never consider stopping my NHS pension even temporarily. You say you will still be a bit better off. As nice as holidays etc are, I would kick them to the kerb, not your NHS pension.

You need to think of the future too, not just the here and now. How will you get by if you live to your 90s with just a state pension, and a rubbish NHS pension because you stopped paying into it, each year paid in, makes a big difference, especially with the employer conts included

ShinyAppleDreamingOfTheSea · 21/08/2023 11:26

I would advise against it personally . It may be tough now financially - but as long as you are able to make ends meet stick with it. In 20 years time you will be a lot more tired and work will be harder - you will be pleased you've got your pension .

riverlodge90 · 21/08/2023 11:30

Cupcake00 · 21/08/2023 10:33

It's 9% of your income. I owe 30k.
I can't change the loan or payments.
I remortgage in 3 years and was hoping to settle the loan (25k) but not sure I earn enough to put that on top of my mortgage. I'm just hoping really.

Have you got a payslip? As this isn't correct it's only 9% on anything above 22/27k depending on when you graduated.

On 30k
Plan 1 - £74pm
Plan 2 - £20pm

You would have to earn 62k to be paying 300pm

riverlodge90 · 21/08/2023 11:32

@Cupcake00 also nightly advice you NOT to pay off your student loan with a equity from your home as it dosnt matter how much you owe to student finance the payment remains the same.

Look up Martin Lewis website he explains it better.

TeenagersAngst · 21/08/2023 11:45

Listened to woman's hour recently and they were discussing this. They had someone on from MSE and she was trying to encourage people to see it as a tax, not debt. It certainly offered a slightly different perspective.

ReeseWitherfork · 21/08/2023 11:50

Agree with PP querying contribution. A nurse at the top of band 5 should be paying around £220 a month into pension (at 9.3%).

Nursemammato3 · 21/08/2023 11:52

Thankyou everyone. I really appreciate the advice here. It's so difficult on your own to make these decisions.
I'm actually questioning the repayments now. It just doesn't sit right. I'm going to call them.
I know, I need to rethink this. I'm just tired at the moment and listening to everyone going on holiday and planning, it has got me down a little.
I was not expecting that much to come out. I will call them now.
I wasn't going to pay my student loan off when I remortgage, I was going to borrow more to pay off the 25k loan (when divorced). I know I need to plan for future, that's why I'm questioning pension. But the loan, at least I can live a little now before I'm elderly and can't.

buckingmad · 21/08/2023 11:55

I'm a tax advisor. I'm happy to double check your repayments if you want to send the info over but obvs understand if you don't. But your repayments sound very high. Might be worth giving student loan company a ring.

Opting out of pension would really be my very last resort.

Nursemammato3 · 21/08/2023 12:39

buckingmad - thankyou for that offer, that's really kind.
I appreciate all the messages and advice.
I have just come off the phone. Its 9% after a certain amount. We looked back and they were confused so checked if I was on the wrong plan. My deductions don't match any plan, therefore advised to call payroll to sort with hmrc. I have done that and the lady I spoke to didn't know about it so has raised it with a senior to investigate. Honestly, I'm so so relieved. It should be about 80/90 pounds roughly. I should have just called them first. Thankyou all, at least I can rest a little now and always have the understanding of the pension process.
Again thankyou so much 😊

Banditqueen12 · 21/08/2023 12:55

Cupcake00 · 21/08/2023 10:15

I might call pensions and see what they say. In the meantime keep doing the bank shifts. A bit tired I am. Was hoping for a miracle. Its really difficult on 1 wage.

I wiuld strongly advise against opting out. Remember that it isn't just about your pension in old age. There is a healthy life assurance aspect, if anything happens to you before you retire; and ill health retirement if you became too sick to work. Your retirement might feel like a lifetime away compared to the here and now. But you have absolutely no idea what tomorrow might bring.

buckingmad · 21/08/2023 13:09

@Nursemammato3 glad to hear it's an error. Someone will have ticked the wrong box somewhere I'm sure. If you've already paid some back then give SLC another ring once it is sorted and they can refund you the overpaid element. Or you might have to wait till the end of the tax year (5 April 2024).

Sisterpita · 21/08/2023 18:10

@Cupcake00 opting out of a pension, particularly public sector has to be the absolutely last thing you do. Even a year or two can make a huge difference when you retire.

I appreciate how disheartening it can be when you are promoted but your take home pay barely increases. However, if you can hang on for a couple of years pay rises (🤞) start to make a difference.

Spacecowboys · 21/08/2023 19:03

I wouldn’t ever consider opting out of nhs pension. The amount deducted each month for your pension is not the amount you will see in your take home pay if you cancel it anyway.
If the worst was to happen, there would be no death in service benefit- vital when you have children. The women I know who didn’t pay into their nhs pension when their children were dependants bitterly regret it now. They are still working full time in their 60’s, whereas their co workers of the same age who maintained their contributions are all retired or semi retired.

FerryPink · 21/08/2023 19:18

I know it's grim but I don't think opting out of your pension is the right plan.

I get that it is utterly rotten working hard to get a promotion then feeling like there is minimal tangible benefit though.

FerryPink · 21/08/2023 19:22

Nursemammato3 · 21/08/2023 12:39

buckingmad - thankyou for that offer, that's really kind.
I appreciate all the messages and advice.
I have just come off the phone. Its 9% after a certain amount. We looked back and they were confused so checked if I was on the wrong plan. My deductions don't match any plan, therefore advised to call payroll to sort with hmrc. I have done that and the lady I spoke to didn't know about it so has raised it with a senior to investigate. Honestly, I'm so so relieved. It should be about 80/90 pounds roughly. I should have just called them first. Thankyou all, at least I can rest a little now and always have the understanding of the pension process.
Again thankyou so much 😊

Ahhh just seen this update (I think you had a name change fail?)

What good news!!

Hopefully you can have a little bit of cash left over for enjoying yourself now Smile