NHS pension statement

[Laburnam]

Pre 95 scheme on the statement figures have they already deducted the percentage you lose when taken early? Or does that need to be deducted by you on top

I don’t know about NHS but on the LGPS statements the figures do not include an early retirement reduction factor.

Thank you

I took it at 58 and remember it was 5% less for 1 Yr early, 9% less for 2 yrs early which is what I took, if that's any help.

@Mossstitch

I took it at 58 and remember it was 5% less for 1 Yr early, 9% less for 2 yrs early which is what I took, if that's any help.

@Mossstitch did you start receiving your pension at 58 or did you have to wait till 60? If the former, do you know if you can decide to retire at 58, not to receive anything for 2 years then get all of your pension ? Thank you.

I took it at 58, largest pension and smallest lump sum. Not sure if you can defer like a state pension although I suspect not, or at least you wouldn't get your full pension at 60 as you wouldn't be paying into it for two years would you?! I have to admit, I'm back working on the bank but don't regret taking it early as having the pension allows me to work as much or as little as I want and, of course, no pension payments going out each month which is quite a large chunk of money isn't it. 👍

You can stop work whenever you like. You then become a deferred member. All the pension benefits you have accrued so far remain. They simply don’t grow.

Therefore, the pension your statement shows should be until NOW. Sometimes it also gives you what you will get if you keep working until your normal pension age for that scheme…but usually you’d have to look online at your pension calculator for that.

If you stop working early AND claim pension early, the amount you receive will drop. This is because they are paying it out for more years. The calculators don’t usually show that info.

Lots of people stop work early and don’t take their pension until they get to their pension age. They do this so they get the full amount they are entitled to. Remember this isn’t a fixed full amount like a state pension, but an amount determined by the amount of service and salary you had. The longer you work, the more it will be.

Lots of people stop working at 58 or similar. They then ‘bridge the gap’ the receiving pension by living off their spouses earnings or some toehold savings or or site pension they can have.

Typically, public sector pensions drop by about 4% for every year you take them early. Bearing in mind, you’ll be receiving pension for longer, in many cases, it take until early 80s to be ‘worse off’ in terms of overall financial payout…by that point you’d be getting state pension too, plus have enjoyed 2 more years of hopefully better health younger retirement, so lots of people think it’s worth doing.

Thanks all. I aim to stop at 59 and treat myself to a cheeky year of not working, and I am saving hard to achieve that. Obviously my pension will be a little less than if I’d worked till 60 but worth it to me, stopping a little early to smell the roses. I might go back to work at some point, who knows but it will be nice not to have to.