Should you opt out of the NHS pension in 2024?

[@MedicsMoney]

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[@Abdul_Rahman86]

Absolutely nothing! I’ll smash those numbers investing in the s&p500

[@Adelrawas1]

You forgot to mention that if you die you pretty much lose most of the pension and your beneficiaries only get a fraction of it. While private pension they would get the whole lot

[@lywc82185]

This is so helpful! I was trying to explain it to someone but this is waaaay better than my explanation

[@MedicsMoney]

You're welcome. Its so complicated but we worry that people opt out without knowing what they give up!

[@RWKirby-gk7mk]

Great Video & Channel - Many Thanks!

[@MedicsMoney]

Many thanks!

[@grgrider8642]

Retirement age is somewhere around mid 60. Isn’t it better to invest that money elsewhere for greater return? Lot of people and colleague have died before their retirement age and its sad that they didn’t get to enjoy their pension.

[@MedicsMoney]

Are you sure the return is greater elsewhere? For all it’s faults the NHS pension pays you an inflation proof guaranteed income for life. That’s hard to beat.

[@mikesmidlife]

You want to try being a band 2 NHS worker on minimum wage in 2024 and affording to pay pension contributions.

[@morgy1916]

I'm an NHS Bank support worker. Would love to know what going to work every day, means how much extra pennies I make a year.

[@yasmin8609]

Could you kindly do a video on SIPP and tax relief on it? I have started a diversified portfolio of investments for intermediate and long term, but I also want to retire early in 50s and have a pension waiting for me before i can draw down the nhs pension. Thank you for all the wonderful talks you do😊 😊😊😊

[@MedicsMoney]

Great idea - we have a podcast on it and historically the problem with SIPP + NHS Pension was tax, but with the new Annual Allowance limits and LTA abolished for some people it could work (not advice DYOR)

[@sharathmanya8964]

What is your view on doctors planning to stay for a short time as in 2 3 years in the UK ?

[@MedicsMoney]

Can’t advise above what we said in the video except to add the NHS pension can be paid into bank accounts overseas. faq.nhsbsa.nhs.uk/knowledgebase/article/KA-04102/en-us

[@arlefsuarez]

Can you explain regarding lump sum payment?

[@davideyres955]

The biggest problem with the nhs pension I see is, as you say, it’s government backed. This is both a positive and negative. It’s not stock market linked but the government does love messing with public sector pensions. My local government pension lost its lump sum but they went from 1/80s to 1/60s per year and then they linked it to state pension age so they took 2 years off my pension income. Then they decided it should be career average. I’m waiting for them to say they aren’t affordable any more and retrospectively change them totally.

[@joannemartin5259]

I am an agency locum F3 doctor and this year will pay both the employee and the employer contributions to the pension (>1k/month). Would it be worth while opting out temporarily and investing this privately? With no employer contributions, I am not sure if there is a benefit

[@TheBrickGP]

Does your pension guide include a how to for the GP annual pension form shenanigans and what to do once it’s completed (if there’s a mismatch)? I’ve been wondering about voluntary pension contributions too. Hope your arm gets better soon!

[@MedicsMoney]

Yeah it does. This video may also help? kzbin.info/www/bejne/b4KWgGZqfsajhac

[@patricialee819]

thank you for explaining, do you recommend setting up Lifetime ISA stock and share on top of the NHS pension or rather put the money into normal ISA stock and shares? sorry for putting such a heavy question in just a simple manner.

[@MedicsMoney]

Great and big question. Basics of how isa works here www.medicsmoney.co.uk/life-time-isa-does-not-begin-at-40/ and more detail including pension v isa here www.medicsmoney.co.uk/ep-159-whats-the-deal-with-lifetime-isas/

[@fd7687]

Hello, I'm thinking of opting out just for a couple of years? Like 1-2 years would that be a good idea? Also, would I get taxed more? Thank you

[@kaxar6954]

Can you give us an estimate of the guaranteed income for someone with 15 years NHS pension with a salary of about £50K who retires at 55yrs. Just as an example, thanks.

[@oliverbranston9588]

The online Total rewards statement of the NHS pension website will give you some idea about returns (although this will be based on an expected retirement at the, most likely, 67 - so, retiring much earlier will reduce this considerably).

[@simoncove1]

I guess the question could be… is a pvt pension better because you can give the whole lot to your dependants? NHS pension dies with you excepting spouse gets half and dependant kids get 1/4 each. Are there any calculations that reflect this anywhere?

[@MedicsMoney]

It’s a good question but calculating that requires a crystal ball to work out how long you live! If you die on your first day of retirement that’s not an ideal way extract max value from your NHS Pension. If you live to 85 your NHS pension likely represents exceptional value, far exceeding a private pension. If you live to 85 you probably wouldn’t have much of your private pension left to pass on.

[@lakuli77]

can you have a SIPP + NHS Pension?

[@MedicsMoney]

Yep but be careful of the annual allowance tax.

[@lakuli77]

Thank you 😊

[@devonshrine]

guide for tax rebate for nurses not working on the site?

[@MedicsMoney]

☹️could you contact us here and we’ll help www.medicsmoney.co.uk/contact/

[@paediatriciandoctorzahidhu8360]

I am about to work in NHS with annual salary of 72000 before Tax.. What will be the percentage of my contribution to the pension ? Will it be before tax and NI or after ? Please explain ...

[@MedicsMoney]

Your contributions will be before tax, hence why pensions are described as tax efficient. If you pay tax at 20% a £1 pension contribution will cost you 80p If you pay tax at 40% a £1 pension contribution will cost you 60p The amount you contribute depends on your salary www.nhsbsa.nhs.uk/member-hub/cost-being-scheme Hope that helps?