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Original poster

Cash in pension

15 replies

Wildernesswandering · 19/04/2023 08:47

I have worked for the NHS for quite a few years in different hospitals and in primary care but would like to cash in my NHS pension. Does anyone know how to go about this? Thanks

OP posts:
Pedestriancrossing · 19/04/2023 14:01

Speak to Pensionwise first. If this is your only or main pension you will be strongly discouraged from cashing a pension in. If the pension pot is worth more than about £30K you have to get an independent financial advisor to support your request, which can be a lengthy process and cost a fee.

Missmarplesknittingbuddy · 20/04/2023 08:54

As far as I am aware you cannot take an NHS pension in cash( which ever scheme you are in ) as there isnt actually a 'pot' of money even though your pension statement shows a CETV equivalent value . You can maximise your lump sum once you reach the minimum age for drawing that pension .

Missmarplesknittingbuddy · 20/04/2023 08:58

The link posted earlier has all the info and you can get a refund of contributions in some cases . Which NHS scheme are you in ? as this may change your options .

Scottishflower65 · 20/04/2023 09:16

You can get a refund of contributions if less than two years service. Otherwise you can take the pension and any lump sum once you reach the minimum age to do so. If before official retirement age for your scheme, you would get an actuarily reduced amount.
There is no ‘pot’ to cash in for NHS so that is not an option.

wobbleinprogress · 20/04/2023 09:21

Pedestriancrossing · 19/04/2023 14:01

Speak to Pensionwise first. If this is your only or main pension you will be strongly discouraged from cashing a pension in. If the pension pot is worth more than about £30K you have to get an independent financial advisor to support your request, which can be a lengthy process and cost a fee.

Pensionwise won’t help with an nhs (db) pension ( and there is a 4 week wait for a pretty unhelpful appointment) if the cash in value is more than £30k you’ll need to see a qualified financial adviser who will probably recommend you don’t cash in.

Original poster
Wildernesswandering · 20/04/2023 09:26

Thank you everyone for you replies. Looks like it is not really an option. I do appreciate you taking the time to respond.

OP posts:
Missmarplesknittingbuddy · 20/04/2023 10:03

The NHS pension schemes are really good ones . In difficult financial periods in my life I would have been tempted to " cash it in " , if this had been an option . I am very relieved it wasnt, and I am sure in the future so will you , OP .

TeapotCollection · 20/04/2023 10:11

Definitely NOT an expert but I don’t think you can just cash in any pension. I think you can have a quarter of whatever you’ve got in a private pension when you’re 55 but not before

Gall10 · 20/04/2023 10:21

Pension advice shouldn’t be sought on message boards..it’s a very specialised area and unless someone knows the exact circumstances of your scheme they can be offering very bad advice.
If you’re a current NHS employee you’ll have a designated pensions officer - HR should be able to point you in the right direction.
NHS pensions are ‘defined benefit’ schemes….you pay in a known amount and you get a known amount when the pension is taken….this will be index linked. The monetary contributions are not invested-just used to pay those in receipt of current pension. In time active members will be paying in to pay your future monthly pension payments!
The six figure amount you read on the pension statement is the amount you would need to have in a ‘private’ pension to get you the equivalent amount the NHS pension will pay you. It’s not a pot of money you can access.

you should receive an annual pension statement, although as an NHS employee of over 40 years I can only ever remember receiving one!!!
you cannot ‘cash in’ a defined benefit pension - you can stop paying into the scheme but this is usually a very poor decision to make.

As for people who shouldn’t be giving advice on message boards-sorry I’ve not taken my own advice!

Pedestriancrossing · 20/04/2023 11:33

I don't think advising OP to speak to NHS Pensions and Pensionwise is poor advice though? Would it be better to just ignore OP's question altogether?

Original poster
Wildernesswandering · 20/04/2023 13:29

Honestly - thanks to everyone for advice and links. I didn’t know where to start with this as am not a current NHS employee and am just looking at options. Great advice from everyone and thanks for not ignoring the question!

OP posts:
wobbleinprogress · 20/04/2023 14:02

you would wait 4 weeks for a Pensionwise appointment only to be told they can’t give any information on nhs pensions, so it is poor advice - sorry.

NerdyIsMyMiddleName · 07/05/2023 21:15

wobbleinprogress · 20/04/2023 14:02

you would wait 4 weeks for a Pensionwise appointment only to be told they can’t give any information on nhs pensions, so it is poor advice - sorry.

I can confirm this - I phoned Pensionwise last week to book an appointment and they told me they can deal with any defined benefit pensions like my 15 year NHS one, but could help me with the personal pension plan I'm paying into now I work for a private company.

NerdyIsMyMiddleName · 07/05/2023 21:15

Sorry - that should read can't deal with

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