NHS pension disappointment.

[Stillearninglife]

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?

This is incorrect.

The reason your monthly income will be £800 is because you’re taking the pension early. If you take it later, the monthly pay will be more.

I’m not sure what your profession is nor what NHS scheme you’re a member of, but assuming your standard NHS pensionable age is 60, your decision to take the money from 55 will mean a hefty reduction in the monthly amount. Were you to wait to 60 it’s likely that the monthly amount would go up above £1000. That’s not unreasonable at all given that you’ve also not done the full 40 years of service.

At a very rough guess your pension will be reduced by between 20 or 40% depending what scheme you are in due to going at 55

Even though you’re no longer working for the NHS and contributing your pension will be reduced by taking it before the standard retirement age (because you’re going to draw it for longer). So even just not touching it for a few years will increase the amount.

Your retirement age will depend on whether you were in the 95 or 2008 scheme - and depending when you left the NHS possibly partly the 2015 scheme

That looks about right to me OP. As a comparison if I take my local government pension at 61, I‘m expecting a lump sum of around £45,000 and around £500 a month after 20 years service on about similar pay.

This is incorrect.
The reason your monthly income will be £800 is because you’re taking the pension early. If you take it later, the monthly pay will be more.

You are wrong if OP has special class she can take her 95 section at 55 in full without reduction. Why do people keep typing stuff when they obviously don't know the facts?

How many years of reckonable service do you have in the 1995 scheme? Depending on when you left the nhs you should also have some 2008 or 2015 pension. The info will be on your total reward statement or the nhs my pension website.

Even though you’re no longer working for the NHS and contributing your pension will be reduced by taking it before the standard retirement age (because you’re going to draw it for longer). So even just not touching it for a few years will increase the amount.

Again you are incorrect if OP has special class!

I think you are misunderstanding how a defined benefit pension works. There isnt an individual pot in the same way as a private pension. They pay you a defined amount which depends on how long they are likely to have to pay it out. At 55 you could possibly be collecting your pension for longer than the 33 years you worked.

Before you make a decision I would ask them for a forecast for what you would get at at 60 and 65.

I don't think you understand what a DB pension does. That's not how it works.

Thank you!
im just deflated I suppose that it’s so little but have no idea if it is right and feel very vulnerable as I’m relying on a service that got it so wrong when it lost over 10 years of contributions and I just knew in my gut it was t right so made the enquiry.

If I’m no longer paying into it, growing it then how can it give a greater return if I leave it another 10 years is my question.

I now have another job, paying into a top up private pension that will overtake my NHS pension by a county mile in 10 years.

It feels like another kick in the teeth by the NHS after so many dedicated slogging years in a job that in the end, nearly ended me.

Taking it at 55 will make it lower. Pensions are generally worked out to an average sort of life expectancy so if you live to that age, you will have received the same total sum as getting more per month for a shorter time. Focus on the fact you'll get an extra 10 or so extra years of freedom!

@helpfulperson The 95 section is not a defined pension, it is a final salary pension. AGAIN for the people at the back the 95 section closed in 2022 NHS staff cannot put any more money into this pot. If OP has special class she is entitled to take this IN FULL at 55 WITHOUT reduction or 60 in my case as I am 48.

It’s not frozen OP. It keeps increasing year on year even if you’re not paying into it. PP is right, you need to ask for forecasts before you make a decision.

OP please ignore all the folks who clearly have NO idea how the 95 section works!!!

I have special status yes.

Out of curiosity how much would you think was the ‘right’ amount?

This maybe wrong. You get a reduced pension for taking it at 55. In the 95 scheme you may not if you are a protected group.

£800 a month at 55 is a good pension. Look up how much you would need in a pot or annuity to get that inflation linked and with survivors benefits.

I see you have said you have special status. Are you sure? The group is quite small.

I envy you! I was 6 months short of being SC but couldn't start my Nurse training until I was 18 back in '95 so had to wait 6 months and that has pushed me back 5 years.....gutted 😂

Therefore no reduction.
I have been front line for 33 years. This is classed as special status which means 0 reduction.

I agree with this. Get a forecast of how much it will be if taken at age 60

Taking your pension at age 55 ....£800 a month..... thats £48k you're taking out of your pension "early" plus the lump sim

Get that second forecast and see what that adds up to

@Stillearninglifelook for this Facebook group and after you’ve joined take the time to read all the info there. If you can’t find the answers to your specific questions I’d be surprised. As a fellow burnt out nhs worker I am speaking from experience.

Oh dear lord, that’s utterly utterly disappointing for you.
Sympathies with this.

1989 I put on my student nurse hat, been at it ever since. I’m honestly a wreck.

Could not face one more day of it after being kicked across the room by a patient, that was the last straw, the lady of many many assaults over the years.

The key things to understand are:

1. What your profession was
2. What scheme you were paying into (eg 1995 scheme, 2008 scheme).

Without knowing those things. It’s impossible to say if your calculation is right.

If you paid into the 1995 scheme and are in a protected profession, then the amount you receive at 55 will be the maximum amount. If either of those things aren’t the case, then you will get much more by waiting to 60 or even beyond (depending on what scheme you’re in).

That shows a complete misunderstanding of how it works, you'll get much less per year taking it early. Presumably whatever job you're doing now, you're paying into a pension.

Edit, just seen it's special status so that's different.

looks like still no images being allowed so I will have to type the long title of the fb group! NHS & Public Sector Pensions information