How an NHS Manager Plans to ‘Semi-Retire’ at 55 on £3,700 a Month
In our “How I Manage My Finances” series
Our objective is to discover how individuals in the UK manage their finances through spending, saving, and investing to cover expenses and reach their objectives.
This week we talk to Laura Middleton, aged 31, an NHS administrator residing in Macclesfield along with her partner Danny, 32, their baby girl Eleanor, who is nine months old, and their golden retriever named Ciri. Laura believes that the NHS pension provides a compelling reason to pursue a career in the public sector and aims to partially retire by the time she reaches 55 years old.
Monthly budget
My monthly income:
As an NHS manager based in Manchester, my monthly take-home pay is £3,750, which increases with additional income from on-call shifts. Although I am employed full-time, I follow a flexible schedule involving a nine-day two-week cycle. Similarly, my spouse, who also works for the NHS, earns £1,650 each month after taxes.
My monthly outgoings:
Mortgage payment at £711.75, including an additional monthly contribution of £175 towards mortgage repayment; grocery expenses approximately amounting to £500; council tax costing £129; utility costs for electricity and gas totalling £140; water bill at £27; financing payments for the vehicle set at £193; gym fees standing at £27; mobile phone charges tallying up to £20; continuous fee for contact lenses being £19; auto insurance premium comes out to be £74; affiliation with a professional organization requiring a commitment of £23 annually; charitable contributions made to World Wildlife Fund summing up to £3 each period; streaming service cost through Spotify fixed at £12; shared family membership with National Trust priced at £12.60; bundled services from Sky covering television and internet connectivity charged at £113; insuring pets carrying a price tag of £25; employing someone to walk the dog every week amounts to £170; hiring domestic help weekly rounds off to £60.
In summary, roughly £850 gets allocated toward the NHS pension fund each month. Additionally, funds get deposited regularly across various Cash Individual Savings Accounts (ISAs).
When I was younger, I aspired to become a doctor. However, after enrolling at the University of Liverpool, I discovered that medicine wasn’t the right fit for me. Fortunately, I managed to get into the NHS Graduate Management Training Scheme and began my career with the NHS in 2015.
I started my current NHS job in October 2022. I’m a directorate manager and am responsible for the day-to-day running of a department. I work full-time but flexibly and take home £3,750 per month.
In the
NHS
, the pay structures are extremely transparent. I don’t see the same reflected in private sector roles and understand from people I know who work in the private sector that there can be a huge disparity between how much each person gets paid while doing exactly the same role.
Up until last year, the only times I received wage increases above inflation was when I got promoted to a different position.
Much of what motivates individuals working in the public sector stems from their values; however, at the end of the day, if their salary does not cover their monthly expenses, this can be problematic.
bills
Then they will have no choice but to seek alternatives elsewhere.
Our child, Eleanor, came into our family in July 2024. A major advantage of the NHS is their maternity program, which provided additional support during my statutory maternity leave for half a year.
My current
childcare
The expense involves funding my spouse’s shared parental leave, enabling them to look after our newborn for three months. Essentially, this costs me £580 each month since I’m covering their portion towards our combined account.
In July, when Eleanor begins attending nursery twice weekly, I anticipate my monthly childcare costs to be approximately £700. However, with the introduction of funded hours starting in September, these expenses should significantly decrease, though I’m unsure by exactly how much.
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We reside in a terraced house with two bedrooms that I bought in November 2019 for £160,000. I felt fortunate to acquire it because a buy-to-let investor had shown interest too; however, the seller opted for me recognizing the challenges involved.
get on the ladder
I purchased the house solo.
Upon completing my two-year graduate program in 2017, I opted to
return home to live with mom in order to save for a down payment
During my two-year stay at home, I managed to save approximately £900 each month, accumulating a total of about £23,000. This sum covered the down payment, expenses, and even some furnishings.
We initially intended to relocate to a larger home in 2022, but the
mortgage rates
soared drastically. The revised plan is to relocate in 2026, coinciding with when I do.
student loan
It will be fully settled once my current fixed-rate mortgage period concludes.
We want to remain in the same neighborhood and are searching for a three or four-bedroom standalone house, likely priced from £400,000 to £500,000. This upcoming purchase should ideally be where we settle down long-term.
I don’t have any
investments
At present, since I aim to maintain as much liquidity as possible because I plan to relocate shortly and need to undertake some small repairs on my current home before putting it up for sale.
I own an ISA portfolio with Nationwide, encompassing three fixed-term investments.
ISAs
And another one Triple Access Online ISA. Altogether, I have approximately £11,500 stored in my cash ISAs.
I believe enrolling in a workplace program could be beneficial.
pension
One of the finest decisions you can make is contributing to a pension. I’ve consistently contributed to mine. Roughly 12.5 percent of my monthly salary is allocated towards my pension, with my employer matching this amount. Consequently, my overall monthly pension contribution totals approximately £850. In comparison to other pension plans, I believe mine stands out positively.
NHS pension
is one of the best you can get. It is a massive incentive to work in the public sector.
My
state pension age
is currently 68. I’d definitely like it to be before then and would like to be able to semi-retire by 55.
I believe I would struggle with jobs in the private sector since my initial focus usually isn’t on profit; instead, it’s more about acting ethically and doing what benefits others.
I’ve always dreamed of living comfortably, and I believe I’ve accomplished that. Any additional perks from here on out would be great, though I wouldn’t rule out hitting the lottery jackpot and establishing a golden retriever sanctuary.
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