Receiving my NHS pension at 60

[Fernandez54]

I worked as a nurse for about 12 years, but for family reasons I gave up nursing, I paid into the NHS pension until I left. Fast forward to now, and I’m now 54 I work as a TA in a high school I also pay into that pension (6 years so far.)

I’ve recently logged into my NHS pension account to get a prediction, it states I will get it at age 60, a lump sum ( a big one or a smaller one my choice) and then a monthly amount.

Either way it’s not enough for me to fully retire so I will continue working full time as TA.

Is it better to get the larger lump sum and a reduced monthly payment or the smaller lump sum and a bigger monthly payment?

i know it’s 6 years off but I don’t know what to do?

any advice ?

I have the same dilemma with Civil Service pension. As my mum died at 61 I am gambling that it’s better to take the max lump sum. Pay off small mortgage and partially retire. Live on part time salary and defer pension until I can’t face work any more.

If I make it to 67 I’ll give it all to the DC for house deposits.

All income, apart from the tax-free lump sum (1995 and 2008 pensions only), is taxed if you exceed the personal allowance. Once you reach state pension age you no longer pay NI though, so that makes a difference.

Commutation rates (i.e. converting pension to lump sum) for gov funded pensions are generally dreadful. Often 12:1.You need to look at what you'd be giving up. At 60, you could be looking at well over 20 years of payments of inflation linked income. I would not commute pension to lump sum at those rates.
If you are continuing to work, you could put extra income into either ypur LGPS pension or open a personal pension and get the tax relief.

Pensionwise can only discuss DC pensions, not DB pensions (which the NHS scheme is). Makes sense because DB pensions vary depending on the individual scheme, they wouldn't be able to explain the options.

I took maximum monthly pension when making a similar decision. I figured given rises were index linked, that saved me from needing to beat / achieve that amount of growth by investing the TFLS myself. I didn't need the lump sum for any specific purpose so more guaranteed income for life seemed a better option for me.

Yes, it does mean I pay income tax on the additional income but I still anticipate being better off in the long term.

All income is subject to tax if you have more than personal allowance coming in each year. Why ever would you think otherwise?

Pensionwise won't offer advice on a DB pension.
They also won't give specific advice on your individual circumstances even for a DC pension. They are really there to explain the very basics. Such as what the different terminology means.

You might be able to take the nhs pension at 55 if your role qualified for special class status https://www.nhsbsa.nhs.uk/sites/default/files/2025-05/NHS%20Pensions%20-%20Special%20Class%20status%20%281995%20Section%20only%29%20member%20factsheet%E2%80%9320250508-%28V2%29.docx

I might be wrong but I think you still have to be in the job role to be able to leave at 55?

Yes that’s right I can’t get it at 55 sadly! 🤣

Ah that makes sense. I’m in a similar situation. But didn’t have one of those roles anyway. I fully plan to take mine at 60. But don’t know whether I’ll take the larger lump sum yet. Will depend on my health then.

I have a DB scheme pension from a previous job which will pay out from age 60. I am working full time and will continue to do so until at least 65 (state pension payable at 67 currently).

I will take the tax free 25% as not taking it adds a minor amount to the monthly payment which would take over 30years before it makes up for the 25%.

And, whilst I hope to be around for a long time, it’s not guaranteed. If it were DC I might leave it as it would stay in my pot and accumulate but as it’s DB it will stop paying out on death.

but as it’s DB it will stop paying out on death.

Again, here is where DBs vary. Mine would pay a 50% pension to DH which would be key to him continuing to live comfortably, he wouldn't manage the bills on his pension alone. A safer option than potentially spent savings.