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9 Comments

  • snaphunter

    Why not both? Make sure you are signed up to the NHS pension https://ukpersonal.finance/pensions/#Im_in_a_Defined_Benefit_pension_scheme_%F0%9F%A6%84 and if you have money leftover from your monthly budget, look into your longer term goals. Is owning a house on your horizon? If so, perhaps saving in a Lifetime ISA might be something to consider. I strongly suggest working through [the flowchart](https://ukpersonal.finance/flowchart/) before you make any (potentially expensive) decisions.

  • __Rum-Ham__

    Your pension will do its thing in the background for the duration of your career. Don’t opt out. See what you’ve got left after all your bills and expenses are paid and if you can afford to, open a stocks and shares ISA and invest every month into a global index fund or ETF.

    (Very much not a financial advisor but that’s what I’d do in your situation).

  • CabbageDan

    Ideally do both, but if you can only do one then choose the pension.

    The NHS pension is arguably more valuable to contribute to the older you are – and it is possible you’ll get more out of your money by investing it when you are 23. But it’s also possible you won’t. The nhs pension is pretty much cast iron guaranteed- which is worth a lot in my opinion. Plus it has other benefits like death in service.

    My strong advice is to just let the nhs pension accumulate in the background and forget about it. Then with the money you have left work out if you want to invest further.

  • Matteblackandgrey

    You’d have to be a top 1% trader in the world to out perform the nhs pension given the employer contributions and inflation link.

  • Lettuce-Pray2023

    Jesus wept. I work in the NHS band 5. The pension is tax efficient means of saving coming from your gross pay (you won’t suddenly see that pension contribution appear if you withdraw from the scheme, it will become exposed to tax, you’ll get less than you think); contribution from your employer (yes purists before you start – I know it’s not a defined contribution scheme); good vehicle that helps keep value against inflation; helpful if you become a high rate tax payer if promoted or shift enhancements kick in for weekends and night meaning you earn more.

    This is not rocket science and tbh it a question only asked by young 20 somethings watching too many YouTubers or TikTok vids on the latest trading 212.

    You can easily open a SIPP; a Shares ISA. This isn’t an either or question. But one thing for sure – don’t withdraw from the pension. – it’s one of the best remaining.

    Pension planning sessions are wasted on those retiring – they should be part of corporate induction to avoid the above problem being raised again and again.

  • AutoModerator

    It looks like you might be asking abut the NHS pension, so you may find this site helpful: https://medfiblog.wordpress.com/the-nhs-pension/

    We are not affiliated with this site in any way – it has been recommended by subreddit users and seems competent.

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  • ukpf-helper

    Hi /u/MushLoveee, based on your post the following pages from our wiki may be relevant:

    * https://ukpersonal.finance/pensions/

    ____
    ^(These suggestions are based on keywords, if they missed the mark please report this comment.)

  • WaddyB

    Pension. Think of it as deferred pay to when you retire. And you get ‘free money’ contributions to match yours from the employer. It is guaranteed.
    Anybody who opts out is misguided and will regret it. Live within means to make sure you don’t even think about reducing pension contributions from your pay.

  • Appropriate-Fox-8094

    The NHS pension is a defined benefit pension generally speaking they’re the best option for the standard deductions. If you’re looking to boost your pension later in your career to retire earlier then consider investing.