Can someone explain the NHS pension please?

[OddCat]

I am 54 and no longer work for the NHS. I have received a forecast and don't understand the bit about exchanging some of the pension. Can someone explain it in simple terms please?

Did it mention commutation? That means giving up part of your pension (for ever) in exchange for an increase in your lump sum.

There's lots of help here

Yes it did Ursaminor

Thankyou imsorryiasked I've looked at that site but I'm none the wiser

Ursaminor what part of my pension would I be giving up ?

You can choose between a lump sum of £50000 and an annual pension of £20000 or a lump sum of £25000 and an annual pension of £25000.

Figures plucked out of the air and only an illustration. This is not something people can advise on without full knowledge of your circumstances. You should look at the link imsorry posted and perhaps ask for advice from your union or some sort of independent qualified advisor.

As Barbara says, that's a question for a qualified advisor, not me I'm afraid! I'm in Scotland, and also ex NHS, but we don't get statements until our retirement date, so I can't even use my own situation as an example.

Could you phone up the organisation you used to work for in the NHS and see if there is an in-house pension advisor you could speak to?

I've looked at the website I'm sorry recommended, and think that this commutation calculator might help you - you can input your current forecast pension and / or lump sum (depending on which pension section you are in), and how much extra lump sum you might want - and it will show you how that will cost in terms of annual pension. But I would stress that this is definitely something to take professional advice on before doing anything. Not something to enter into lightly!

www.nhsbsa.nhs.uk/search?aggregated_field=commutation