A short YouTube conversation (host Ndubuisi 'Andy' Egwim with Martin) advising NHS workers not to hastily opt out of their NHS pension. Key points: employers make a substantial percentage contribution (cited as 23.7%) in addition to employee contributions (doctors' highest band cited as 12.5%); opting out forfeits employer contributions, existing tax relief, and attached benefits (critical illness, death-in-service). The video also stresses that NHS defined‑benefit pensions are indexed for inflation (example: £50 ten years ago would require ~£68 today). Final message: think carefully before opting out.
Questions this video answers
July 21, 2025.
12.5% (described as the highest band for doctors).
23.7%.
£50 ten years ago would require about £68 to buy the same goods now.
Chapters
If you opt out of pension, you are cheating yourself.
Why you are not getting the money.
Your employer should be contributing to your pension, they must contribute money to your pension.
Now, if you are in the nhs, in the higher tax band or wherever.
You are paying, I don't know where you work, whoever has that question, but I know for doctors the highest is 12.5% of their own money goes into their pension.
But the employer is not putting 12.5%.
They are putting 23.7%.
So if you opt out, it's okay, they don't have to put that 23.7. So before you opt out of the NHS, also remember that that money already had tax relief.
Once you opt out of the pension.
That tax relief is gone. Also the other benefits, there might be.
Critical illness benefit, there might be debts in service benefit, other benefits.
So before you opt out of the pension, make sure you know what you're doing. I mean, part of why I, I'm.
Not in a workplace pension is obviously because I work for myself.
But did I opt out of the pension I've paid for years? No, it's still there. I don't put more when I'm 65 or 60 or whatever, I don't know. Whatever the money is, it should be.
Adjusted based on inflation. If it's 20,000, it will not be 20,000 because what hundred pounds was in 2015, you now need 136 pound 5p to buy the same thing. Did you know that? You know that because when you go to Tesco now, you see that the.
Things are small and cost more. You don't need the bank of England.
Andy and the bank of England governor to tell you, but inflation is inflating. It is. And the math is not.
Martin, when I came to the UK.
10 years ago, I came with £50.
Everybody will be looking at it carefully. Who is this guy that came with £50 to buy like £10£1 milk?
And they'll be looking at it carefully.
They were scrutinizing it with so much.
Attention, like a jeweler looking like a suspect diamond.
That £50. Now what you could buy, I need.
£68 to buy the same thing.
It's not figures I made up.
Go to bank of England inflation rate calculator, that will tell you.
Now, if you're on a defined benefit.
Pension, like NHS pension, whatever you contribute is index length. So it's adjusted for inflation.
You don't end up with just what.
You contribute, you, you end up with what you contributed adjusted for inflation.
So I won't be in a hurry.
To opt out of my pension. Except you really love your workplace and you don't want to collect all the money you are due to be paid.
