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Retirement

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Original poster

NHS pension disappointment.

570 replies

Stillearninglife · 06/05/2025 05:58

After 33 years in the NHS I have been battling with pensions as they “lost” years and years of my pension due to “clerical errors “.
Now I have a prediction which I intend on taking at 55.

Seemingly one of the best pensions around, reading of other people’s pensions, it is utterly crap.

33 years with a lump sum of less than £80k then monthly payments of less than £800 per month is so low. All those years at B7 diligently paying in thinking I will be ok financially and it’s just dire.

I left the NHS due to conditions and pay some time ago (2 years ago) so nothing is going into the pot, so I’m taking it at 55 next year.

Anyone had similar experience with NHS pension?

OP posts:
Thread gallery
6
Allthings · 08/05/2025 10:40

@Spacecowboys other than OP saying she left 2 years ago we don’t know exactly when she left. 2 years ago was 2023, so even if she chooses to take her pension in her legacy scheme, there may still be some in 2015. It won’t be until she gets to the choice stage in terms of the remedy that she will know which is the most advantageous scheme to be in for the remedy period, but taking anything early in 2015 will be reduced significantly due to taking it circa 12 years early. If she ends up with only a few months or a year in it, she may not be bothered by the hit but I wanted her to be aware that there is the option to take each section at different times. Hence urging her to attend a workshop to make sure she fully understands her pension and options.

Bluedenimdoglover · 08/05/2025 10:48

Can't you opt for income only from your pension and forego the lump sum, which is really not that much? That might increase your monthly pension?

Allthings · 08/05/2025 11:15

@Bluedenimdoglover that is not how the 95 NHS pension works. There is a mandatory lump sum.

There is however the scope to take the minimum lump sum which results in a higher monthly pension rather than a higher lump sum and a smaller monthly pension.

Redty10 · 08/05/2025 13:07

Specialist status does have certain requirements one of which is not having a break of 5 years of service, how long ago did you leave NHS?

NoBinturongsHereMate · 08/05/2025 13:30

Length of break is irrelevant unless the OP returns to the NHS. You have to be in a qualifying job on the date of retirement to have SCS.

RavenofEngland · 08/05/2025 14:23

Stillearninglife · 06/05/2025 06:14

The pot is sitting there. No further contributions into it, not growing so won’t be worth anything higher at pensionable age. I might as well take it at 55.

I work for a public sector pension administrator. Definitely make sure NHS pensions sort out your lost service. Also, even though you’re not paying into it, it will go up every year, won’t always be a huge amount, but it will go up. Also taking it at 55 means you are losing a massive chunk to early retirement reductions. Assuming your state pension age must be at least 66 or 67, you need to be absolutely sure that this is what you want to do, is retiring at 55 worth losing more than 40% of your pension? I suggest you Google the NHS pensions early retirement factsheet and read it. Retiring more than 10 years early is a massive reduction to your pension.

Original poster
Stillearninglife · 08/05/2025 15:25

Allthings · 08/05/2025 07:43

@Stillearninglife I see you are considering taking your pension early due to instability with your current role. Unless you need the lump sum especially in the near future, it may we worth considering not claiming your pension until your fear of being unemployed comes to fruition. If you can, make sure you have enough savings to keep you going after possibly loosing your job and waiting for your pension application to go through.

Having an income and pension could put you in a higher tax band, but of course 60% of something is better than nothing. Having a large lump sum, may also exclude you from certain benefits if you do loose your job - that will depend on the household set up and any current savings you have.

There are two main schools of thought on when to take your pension as a deferred member; take it early with reduction or wait until NPA and get the full amount. Neither is right or wrong.

I was a deferred member and decided to wait until I was 60 before claiming my pension. I chose that option after taking into account a lot of factors including our household income at the time, did I need the money then, size of pension at reduced and full value. For me it was right to wait, but overall I would not have lost out by taking it early until I got into my early 80s. After working things through, a friend decided to take theirs at 58. Both of us did what was right for our individual circumstances.

You don’t have to take both parts of your pension at the same time. You could leave 2015 until you get closer to state pension age, but claim your 95 before or at 60. You could also play around with your lump sum for 95. You don’t have to take the minimum or maximum lump sum, you could take an amount between (which is what I did). I didn’t need the lump sum to pay of mortgage, go travelling etc etc, but I did want a title more than the minimum. Part of that decision making was also around how much income I would need in the future to meet my outgoings. This is where financial planning and understanding your pension is so important.

I would strongly advise that you sign up for one of the Pen-gage free workshops. You have nothing to loose than a small amount of your time. The worst case scenario is you learn nothing new, but given you were not aware of loosing SCS, there may be other things you can learn including understanding your pension statements etc (lots of people have issues with these).

I will also echo what I said previously about using a financial advisor who does understand the NHS pension schemes. If you use someone who doesn’t, the advice could be very, very wrong. I have heard of some awful mess ups due to people following advice from an IFA who did not understand NHS pensions.

Good luck with whatever you eventually choose to do.

Fantastic understanding and sound advice, thank you x

OP posts:
PeachTrifle · 08/05/2025 17:55

With respect to @blueleavesgreensky this is not how the NHS pension works - it is very different, there is no pot and if op is in the legacy 1995 scheme there is no growth so she will be loosing out by not taking it. Everyone was moved to the new scheme via a taper known as McCloud judgement so OP will need to find out what year she was moved. For example, I am 63, I took all my 1995 pension at 60 (no special class) and am leaving my 2015 contributions until the new normal pension age of 67 otherwise they will be actuarily reduced.
I know that is not in line with the pensions usually work, but it how the NHS scheme works

NoBinturongsHereMate · 08/05/2025 18:05

OP will need to find out what year she was moved

She's too young for the taper to apply, so it's the standard choice between April 2015 and April 2022.

LaMarschallin · 08/05/2025 18:12

Just out of interest (and sorry to make use of your thread, OP) does anyone know how long it takes for an NHS pension to start coming in if you apply after turning 60?

NoBinturongsHereMate · 08/05/2025 18:23

Age of application makes no difference. Processing time is around 4 to 5 months.

LaMarschallin · 08/05/2025 18:31

Ah, thank you NoBinturongsHereMatep
I'm not expecting anything fantastic but I suddenly realised I'd be allowed a doctor's pension.
They've received my application (as they've sent various documents back) but I wasn't sure when I'd get any payment.

Eta Drinks are on me if you tell me your beverage of choice, NoBinturongsHereMate 🥂

sparrowflewdown · 08/05/2025 18:49

LaMarschallin · 08/05/2025 18:12

Just out of interest (and sorry to make use of your thread, OP) does anyone know how long it takes for an NHS pension to start coming in if you apply after turning 60?

It was about a week to 2 weeks after my DH's birthday once processed but the application took a long time and there was a lot of emailing back and forth, lots of radio silence - probably 3-4 months.

allthemiddlechildrenoftheworld · 08/05/2025 18:49

@Stillearninglife the person saying that im fleecing the tax payer…. WTACTUALF!) If you ever actually find out how to do this, can you please let me know? the taxman knows where every damn penny I make is spent!! I got my nhs pension when I was about 39 after a back injury!

LaMarschallin · 08/05/2025 18:56

sparrowflewdown · 08/05/2025 18:49

It was about a week to 2 weeks after my DH's birthday once processed but the application took a long time and there was a lot of emailing back and forth, lots of radio silence - probably 3-4 months.

Edited
Show quote history

You're also due a drink 🍸
I'd left my job as a doctor at about 50 and didn't think I was going to get anything much until a friend said I should apply.
I now need the extra money if it's out there!

PeachTrifle · 08/05/2025 19:46

@Stillearninglife can you clarify which scheme you are in? Did you move from the 1995 or do you still have some years in there. Also, we were all asked to make a decision in 2008 when they first changed the scheme about whether to stay in the 95 or move. I'm wondering if the reason your pension is smaller than expected is that you don't have anything much in the 1995 in which case Special Class does not apply and your pension is actuarily reduced because normal pension age is 65 for 2008 scheme or 67 for 2015 scheme as @Allthings has posted. Apologies if this is a repeat of a pp question but I couldn't see it in your original posts.
You absolutely must get advice from someone who completely understands the NHS scheme though. Also if you contact NHSBSA they will send you a breakdown and forecast similar to what you would have on TRS (assuming you don't still have access to this)

NoBinturongsHereMate · 08/05/2025 19:57

Hope they process it quickly for you, @LaMarschallin.

sparrowflewdown · 08/05/2025 20:26

NoBinturongsHereMate · 08/05/2025 19:57

Hope they process it quickly for you, @LaMarschallin.

Yes. All the best.

Schoolchoicesucks · 08/05/2025 21:04

Stillearninglife · 06/05/2025 06:14

The pot is sitting there. No further contributions into it, not growing so won’t be worth anything higher at pensionable age. I might as well take it at 55.

This isn't true. There will be a reduction because you are taking it at 55.
What is the standard retirement age for your pension? (There may be a couple of different ages depending on how entitlement was built up). If it is 65 then standard entitlement would be based on them paying out for 10 years less than they will be if they start paying out at 55 so there will be an actuarial adjustment to spread the payments over a longer time.
Do you need the £80k lump sum and do you need the income now? If not then make some calls to the scheme and really find out what your options are and what difference that would make to the payments.

Witknit · 08/05/2025 23:49

Stillearninglife · 06/05/2025 06:05

No longer work for the NHS. I left and will NOT be returning at all, ever.
It has broken me to tiny pieces and now this final insult.

Similar position. Not quite left but B7 reducing hours as much as I can afford.
Impossible to get decent advice on actual amounts I'm likely to get unless I actually apply to retire.
Also moved from one employer to another and was told I'd carry on on the scheme but this didn't happen and I now discover that rather than transfer me, they rejoined me in a later scheme meaning that whilst I can have some pension now, the rest is not available until I'm 67. A crushing blow and I feel completely dumped on.
It's another 7 years and I feel like I've just had enough and can't bear another day of it.
I share your dismay

notatinydancer · 08/05/2025 23:53

Stillearninglife · 06/05/2025 06:15

As I don’t know what the norm is at B7 with that many years contributions I have no idea if it’s about right or not. I’m relying on NHS pensions to give me an accurate answer.

You won’t have always been a full time band 7 though ?

NoBinturongsHereMate · 09/05/2025 00:02

The 1995 pension is final salary, so only the last band counts - not what you were earlier in your career.

NoBinturongsHereMate · 09/05/2025 00:04

moved from one employer to another and was told I'd carry on on the scheme but this didn't happen and I now discover that rather than transfer me, they rejoined me in a later scheme

When did you move? Everyone was moved to the 2015 scheme, even if they didn't change jobs.

Echhoingloudlyy · 09/05/2025 01:59

After I retired from the NHS, I got a letter saying they had over paid me and I owed them money. I challenged them about this and after a lot of hassle it turned out that they owed me money. 😂

Harassedevictee · 09/05/2025 05:27

@Witknit if I were you I would be getting all my paperwork together to show which scheme I was in, including dates, together with the correspondence relating to the job move.

As part of the McCloud remedy you can ensure you resolve any discrepancies.

As a pp mentioned most public sector employees were compulsorily transferred into the new pension scheme from 1 April 2015.