Pension CETV of 35,000-what does this mean?

[stupidwithmoney]

NC because I'm embarrassed to be so dense
My NHS pension CETV was £35,000 in 2018 when I was getting divorced. I haven't contributed to it since.
What does this mean in terms of what my pension payments would be?
I don't understand pensions at all. I'm late 40s.

It’s the cash equivalent transfer value - This is the size of the pension pot you’d be given in exchange for giving up your defined benefit / final salary pension

you should seek guidance from a financial advisor

Don't be embarrassed, a lot of people don't know that kind of stuff, pensions can be complex.

You should still be getting an annual statement which should tell you what it is projected to pay you at retirement. If not then you can contact them https://www.nhsbsa.nhs.uk/member-hub/contact-nhs-pensions-members 😊

Thank you. I've not had a statement. I left the NHS in 2013 and haven't paid into any kind of pension since due to my circumstances. I'm just wondering what kind of monthly income it would give me.

You'll need to contact the NHS Pension scheme to get a valuation. It will have inflated since 2018, and the pension amount you get would depend on variables like retirement age, cash lump sum, etc.

It is possibly worth £150 - £250 per month depending on what CETV multiplier was used

If you want to keep your lump sum of £35k (or whatever amount your lump sum happens to be) then you should roughly aim at withdrawing 3-4% of the total value per year.

£35k on that basis would give you an income of £1400 per year, or £100 per month.

Lump sum? I need the KISS guide here.
I'll contact the NHS pensions though, thank you.

£100 a month? I'll be rich! 🤣🤣🤣

The comment referring to "lump sum" is misleading.

The NHS Pension Scheme is a defined benefit pension scheme, so you will get a monthly pension for life when you retire - not a lump sum. Contact the scheme administrator and they can tell you what that pension is.

However, it is possible to transfer pensions. If you transferred your pension out of the NHS scheme you would get a transfer value instead. That's the 35k figure. You could take that to a defined contribution pension scheme, and then draw it down like a bank account each month as the other poster mentioned. This gives you more flexibility - but the danger is it might run out, whereas your NHS pension is always paid for life.

Normally it would work out about 4% of the total a year as this is the amount of interest a lump sump could be expected to accrue after adjusting for inflation.

4% of £35,000 is £1,400 so would be around £117 a month.

Ooh I think I can give you a rough idea as I also stopped paying into my NHS pension in 2013 and got a CETV of £35kish in 2017.

My most recent statement gives me an annual income from 60 of £2675 and a lump sum of £8k on retirement. I was in the 1995 pension section and if you started paying in before 2001 you probably are too. Otherwise your figures might be different, but it's easy to get a statement from NHSBA, much easier than getting a CETV statement!