am I missing something here? Wouldn’t the contributions have to be close to 100% to cost £1100?
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am I missing something here? Wouldn’t the contributions have to be close to 100% to cost £1100?
NHS employee contributions are based on your take home pay, am near the top band which is 13.5%, this is than matched by employer contributions of 14.3% regardless of what your own contribution is. So if you are a low earner you potentially loss more as any salary sacrifice will reduce your employer contributions more in relative terms.
HOWEVER the actual pension you get is not related to your contributions, though there is a 'pot' is no a real pot. The amount of pension you take home depends on a mixture of the old 2008 final salary scheme and the current 2013 CARE scheme. To give you an idea of how generous the NHS pension is, am currently 38, been paying into the NHS pension for coming up to 2 decades, which isn't that long. Last year I got a letter from NHS pensions department telling me my 'virtual' pot if currently growing at £42K a year, or £2K over the £40K annual tax free pension limit.
I haven't done the figure, but for a private pension to grow at over £40K at year for someone under the age of 40 you need to have made very substantial contributions, and I still have 20 years left to retirement!
But as I've mentioned my actually pension pay out is NOT related to the virtual pot - that is just a tax bill waiting for me at some point. The amount I actually get is based purely on my monthly GROSS salary contributions. So any reduction in my GROSS salary will impact on my pension, for a P Model 3 its £1130/month which is not a small amount for any one to loss from their GROSS salary. But the real killer is any reduction in pension contribution now means you are losing out on 20 years+ inflation+ 1.5% guaranteed growth - Given what's going on with the markets now, there is very few other pension product that can give you that kind of worry free pay out.
This is the Tusker 'offer' for a P Model 3 from our trust, ignore the monthly figure its in effect miss selling, like a £200/month deal where there is no mention of the up front deposit of £10,000, only for these deals the cost is felt at retirement and for each individual that figure is very different. For my own situation after factoring in my reduction in pension pay out that figure should be £1030/month out of post tax pay today!! That makes the cost of this 'deal' £36K over 3 years to lease a car, if am going to spend that much money why wouldn't I just spend another extra £15K up front and buy it out right today??
If you notice on that entire screen shot there isn't a single mention of impact on pensions.....The whole NHS salary schemes seems totally unregulated and am pretty sure 99% of people signing up have not been given any pension advice.
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Pablosammy
Member
Pension is a serious consideration for some. Our scheme is unaffected fortunately, so the savings are real. I heard the NHS scheme can be significantly impacted by salary sacrifice so it does need to be thought about carefully.
Interesting how high the gross amount is on that quote. Ours is just over £900 for the same mileage and duration, also through Tusker.
As an aside, there are some stonking deals on the Audi E-tron at the moment (again, fully maintained and insured, 10k miles, 36 months). I'd have seriously considered it if I hadn't had my heart set on the Tesla.
Interesting how high the gross amount is on that quote. Ours is just over £900 for the same mileage and duration, also through Tusker.
As an aside, there are some stonking deals on the Audi E-tron at the moment (again, fully maintained and insured, 10k miles, 36 months). I'd have seriously considered it if I hadn't had my heart set on the Tesla.
The NHS schemes still save you on NI/higher rate tax, but because the NHS pension is so generous (even the 2015 CARE scheme if you are already a high earner - I would get £40K+/annually at present just based on the CARE scheme contributions at present without adjustment for inflation+1.5% growth or any additional increase in salary), so any NSH employee need to think carefully about sacrificing long term benefits for short term pleasure.
Not forgetting the fact its still an lease scheme, so at the end of the 3 years you still don't own the car, and if you carry on with another 3 years of salary sacrifice the impact on your pension really starts pilling up.
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Pablosammy
Member
Whether you own or lease, every car has a monthly cost. I own my current car outright, but it still has a monthly depreciation, loss of growth on the money that's locked up in it, insurance, maintenance etc. If you change your car every three years or so, leasing often makes more sense than owning. You just need to do the maths.
I'm not NHS, but carefully checked our DB scheme for similar impact, as should anyone before taking out a salary sacrifice deal.
Cyclone1
Member
Keep the info and examples coming as it is really starting to bring to life the best options, albeit it is dependent upon the individual circumstances, company policies and lease provider. Good to see honest examples and whilst salary sacrifice sounds great it is very dependent on whether NIC are paid back in, whether pension is included as well as impact based on contribution level. Lots of factors.....
That is a joke of a figure. Mine was quoted as £760 for the same spec/mileage all inc. This is why I think Tusker are a complete rip off
Cyclone1
Member
Was the £760 a special offer deal without the ability to select colour / interior?
Pablosammy
Member
On salary sacrifice? Who through?! That would work out as £440pcm net (assuming higher rate tax) for a fully maintained and insured M3P, right?
My Tusker M3P order is £520 pcm net, so not a million miles away...On salary sacrifice? Who through?! That would work out as £440pcm net (assuming higher rate tax) for a fully maintained and insured M3P, right?
M3P white/black. That’s the colour combo I wanted and requested. salary sacrifice. NHS Fleet solutions. This wasn’t listed as a special offer, it was just the quote I received when I ordered. Could have been an offer but wasn’t told it was.
Pablosammy
Member
It's well known that the NHS deals are ridiculous and not really representative, and also that they're a minefield with the impact on pensions.
The Tusker 'offer' price is actually £567/month, but doesn't factor in pension reduction. £760/month would be even worse deal!!
LongRanger
Active Member
The £760 is the gross figure, not net. The “net” is £450 a month
yes mine does. Only other expense is the electricity costs for charging
LongRanger
Active Member
Ok, so I can’t discuss figures my end but the 750 figure is comparable to other large employers/lease company deals. Can’t compare exactly like for like as mine is not salary sacrifice due to benefits package - but it’s there or thereabouts in terms of large organisation market buying power.
We have a M3P White/Black on the way, nhs fleet solutions, 12k Miles per year, 2 year lease inclusive of maintenance etc, pod point included, delivery mid June, £341 per month net take home salary reduction (gross was £648.92). Does this sound about right? It seemed too good to be true to me when I first read it but all docs signed and car confirmed on order.
Ah..thats disappointing. Would I still be able to get the VIN from the default page?
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