NHS Pension

[Topsyturvey10]

I have paid into the NHS pension for 20 years and now need to get a handle on it and probably make some sort of overpayment or set up a separate pension.

My problem is that I'm completely perplexed by it, I don't really understand the jargon and tax rules etc.

Has anyone here got any experience of it or did you use a pensions advisor? If so, where did you find them as a google search brings up an epic list and seems to be more for people with significant wealth and investments.

Pension wise is free and will have knowledge of NHS pension schemes. You book a session online with them and they give advice and don’t try and sell you anything. I would try these first.

The NHS pension people are really helpful. If you email them they can send you exactly what you will get at pension age.

Pension wise won't help you with NHS pension advice because they are focused on private pension pots. I know I tried once.

Log in to the pension portal and also ring them ask them for a quote. Plus loads of help guides on the web.

https://www.facebook.com/share/g/2wcmMYDvVbfd3PF2/

This group is your friend. I found out about it on Mumsnet. It's brilliant.

I emailed NHS pensions and they said I can only get a prediction of what I will be due one year before I retire. That will be too late as I need to increase contributions now or set up another fund.

I was going to suggest that Facebook group, really good.

That will tell you what you’re on track for. If you want higher income in retirement or to retire earlier then you’ll need to save more, but if you’re happy with it then you’ll know you’re fine

Thank you, I found them and joined but the replies still have me confused that's why I thought speaking to an advisor about my case specifically might be better.

Go online and enter your details and it will tell you your amount of contributions etc.

If you want to pay more in, the extra contributions would be classed as money purchase (aka defined contribution) rather than adding to your defined benefits in the nhs scheme. It would be worth you finding out whether you can pay additional contributions (also called AVCs) into the nhs scheme and, if so, what the rules are (ie can they go towards a tax free cash lump sum when you retire, which would leave the DB bit of your pension untouched, or are they separate?). If the latter, find out what the fees are and how they compare to a separate personal pension scheme (also knownas a sipp, which you can open yourself with one of the well known providers - moneysavingexpert may be helpful when choosing a provider). The nhs scheme administrators obviously can't help you re other schemes but they should be able to explain your options re AVCs in the nhs scheme.

Hope that helps!

Pension Wise do not cover DB pensions so will not discuss your NHS pension. Try the Moneyhelper pension help line, they discuss all pensions.

I have a local government pension (very similar to NHS). You need to ask for a pension forecast then decide if you want to.put more in. I did AVCs tgrough the prudential on and off and put half my salary in during my final year as I could get it back tax free as a lump sum. A no brainer for me.

Thank you, really helpful, I'll have a look and see if I can make some progress.
I love my job but not the commute and I'd love to be able to leave earlier and do something else for a few years.

This is the arrangement I suggest you check - if you are allowed to take avcs as tax free cash then you don't need to exchange as much of your defined benefits for the same amount of lump sum (so your remaining pension after taking the lump sum will be higher). You will need to check what is allowed in the nhs scheme though as some schemes limit your ability to take avcs as tax free cash (which doesn't mean the avcs are not worth paying in - just make sure you understand the rules do you can do what suits your plans for the future).

Have you got access to My Total Rewards statements, Op? These are produced annually and include pension information. It's very easy to use them to work out what your final pension might be.

Set up another fund via a SIPP. It’ll be a good bridge and you don’t risk not getting all invested monies as NHS is defined benefit which is based on a fraction of your income compounded over the years.

I'm on that Facebook group and I would say that if you spend time reading more and more discussions on there it does get a bit easier.

I have also seen the company Pengage recommended on there for external advice on NHS pensions. I signed up for a free webinar but having managed to attend one yet as I've had to do too many extra hours at work! I might pay for a 1:1 in the end.

It is such a big decision you should get a proper advisor if you do not understand it. Otherwise you could miss something really significant like the Waspi women who completely misunderstood their state pension entitlement

Sent you a pm

If you pay into a private pension the government tops it up by refunding your tax into the fund so worth paying into that. More flexibility than paying more into the NHS pension too.
Worth getting advice from an advisor or website, as well as the above mentioned fb group which is very helpful

This isn’t completely true. You are likely to be affected by the 2015 Remedy (McCloud) which makes it complex.

Each year you are entitled to a pension statement. https://www.nhsbsa.nhs.uk/employee-section
This is where you start because it will set out your pension to date.

You are likely to be in more than one scheme so as a pp said look on the pension website and the scheme guides will set out your entitlement.

You are likely to be affected by the 2015 Remedy (McCloud).https://www.nhsbsa.nhs.uk/public-service-pensions-remedy-mccloud

You are not going to grasp this in one hour, one day nor one week. Think of it as building blocks and spend a couple of hours each month understanding the different aspects of your pension.

Sorry I misread NHS.

I also recommend starting a separate standalone SIPP pension. That keeps it completely independent of your NHS pension so you won’t need to break into your NHS pension until you reach retirement age.

A SIPP is your own pot of money which you can withdraw whenever you like after the age of 55 (rising to 57 from 2028).

It is more tax efficient than saving into an ISA or other savings account as the government tops it up by 25% (ie for every £80 you pay in the government adds £20). You’ll have to pay tax on pension money when you withdraw it, but you’ll have the same personal allowance as if you were still working so you’ll be able to withdraw lots (or all) of it tax free.

You’ll be able to see exactly how much you have saved in your SIPP so if you know what you need to live on you’ll be able to work out when you can afford to retire.

I work for the civil service and can log into my CSP pensions and get a forecast there and then. It’s great as you can play around with it, if you take 100% lump sum or less, how much you’ll get per year etc, and what age you retire at how much you’ll get. Before this was developed I had no idea what I’d be entitled to as the annual pension statement always looked very low but that isn’t a forecast but how much is it now (with 20 more years working left). Assume the NHS doesn’t have this? Give the provider a call and ask about extra contributions.

www.facebook.com/photo.php?fbid=723481523235617&set=gm.1153094869197622&type=3

There is an expert on this group that will give personal appointments and also posts free general advice and explanations