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?

I know there's no penalty in the 95 scheme. I wasn't in that group, for clarity, as I began in 2000 in Scotland and I have been actuarily penalised.

Even more reason for OP's amount to not look like the maximum. Idk enough about different grades perhaps but HE grade 8 (me) is not a very senior grade.

@FolkWays the NHS 95 scheme would be actuarily reduced for early payment (before 60), but not enhanced for late payment. The 2008 and 2015 schemes do have a late payment factor.

Top of B7 would have been around £48K when the OP left, but not knowing the full details of how long on top of B7, or when she left, that is a bit of a guess as to what the ‘final salary’ would be used for calculating the pension. Pay would now be over £50K. Nurses start on B5. B7 is a more specialist/senior role.

II know. The 95 scheme has already been explained. I'm simply making the point that although mine is accrued mainly in the pre 2007 scheme, albeit Scotland, for length of service and early retirement at 60, I seem to be getting a better deal.

In my case, there was no point in not taking my final salary element but I could have chosen to leave 9 years of my entitlement in the 2015 scheme and leave it until 2031 or I could choose (McCloud), as I did, to take the final salary element until 2022 and the 2 years of 2015 element with an actuarial reduction. As a result, I'm getting nearly double what the OP is projected after my 24 years pensionable service (hourly paid and studying for 6 years before that) compared to OPs 33 years. My final salary was 56k but only for the last 3 years, before that, I was 48k, I started on 22k.

One difference may be I had no break in service and was full-time throughout.

Sorry OP this isn't v helpful for you but in your place I'd want to make sure every calculation is correct, especially as they've 'lost' data. I know some people would say I'm too well-rewarded, but I understand why you feel under-rewarded for the work you've done.

Don't you have the option of taking a lower lump sum which will increase your monthly pension, or a higher lump sum and a reduced pension?

@FolkWays there is not enough information from OP, but at face value things are most definitely not right with the figures mentioned and should be much higher even taking into account the reduction for taking it 5 years early and the maximum lump sum. I totally agree that the figures need to be gone through with a fine tooth comb.

I’ve not read the full thread, so apologies if someone already covered.

If you are taking a lump sum of nearly £80k and a pension of £9,600 that would suggest you are maximising the lump sum and taking a lower pension. Fair enough if you have needs and reasons but the rate at which you give up pension for the lump sum in the NHS (and teachers for that matter) is poor. It’s not an exact science as everyone’s individual position is different but your adviser should be able to help you understand this particular point. The standard lump sum is okay but if you take the higher lump sum it’s not a great trade if you think you’ll live a long time. But as I say sometimes there’s reasons that outweigh pension arithmetic.

You're taking your pension 13years before current retirement age, what did you expect? Depending on how many years you have in which pension you're taking at least 5 years early and some 13 years early. With a 5% loss for every year, even if most is in old pension scheme you've lost 25%. Did you even speak to a pension advisor before thinking this was a good idea?

I'm only a year younger than you and even with the mccloud remedy judgement, i still have enough in the 2015 scheme (in line with state pension retirement age so currently 68) to make it impossible for me to retire much before 62/63. Currently paid in for 26 years. You've been given bad advice or not taken any.

Yes that’s true with the NHS pension.

No it’s not. It will continue to increase by the inflationary measure set out in scheme rules

I’m actually appalled on your behalf. Less than £800 a month is rubbish. Something definitely wrong there- I urge you to look into it.

It would increased if OP didn’t take max lump sum and years early

you can’t have your cake and eat it
take less or no lump sum and take pension at maturity date of scheme if you want bigger monthly payments

She’s got nearly 80k lump sum and has take her pension at 55. It’s really not appalling (and I’m an NHS employee so I’m not bitter about her getting a so called gold plated pension!)

No it’s not, i used to work for the NHS (left a long time ago and been in different employment) My NHS pension has grown steadily every year since I left. I took it at 60 and continued to work in my current role.

It sounds as though leaving it until 60 is sensible if no special status as you left early. There is no advantage in not claiming the 95 pension at 60. Leave the other one until at least 62. My advisor told me the way actuaries calculate lump sums favours only taking the minimum lump sum as with average life expectancy you get more money getting it monthly. Different if you need the money for a particular plan.

Ok
facts are
pension of £800 a month
lumpsum of 80K
Band 7 with 33 years service and left.
special class is lost due to leaving before age 55
therefore likely to be a 1995 until Mar 2022
likely pensionable salary @ £43,000 band 7
assumptions are 33 years full service with no breaks or PT service during maternity etc.
therefore
a) 1995 standard pension yearly pension at age 60 = 33/80* £43,000 =£17737 + standard lump sum of £53212
or
b) 1995 lower yearly pension at age 60
= 19.64% reduction of 33/80* £43,000
= £14253 with an enhanced lumpsum of 5.36* 17737 = £95,070.32
but at age 55 pension reduced by a further 21% and lump sum reduced by 15 %
therefore
c) at age 55, reduction of 21% of £14253
gives £11,259 or £938 a month
and a tax free lumpsum reduction of 15% of £95,070 = £80,809.
obviously you need your exact service extract and your correct pensionable pay when you left which you can get from NHS pensions But this would be the basis of your calculations.
no need to pay any financial advisors as they would not do anything different to these calculations

@Stillearninglife OP there’s currently a programme on radio 4, started at 11am, called File on 4 investigates: missing billions. There’s a lady speaking who worked for the nhs, whose pension was ‘lost’. Might be worth a listen.

I retired at 55 as a top NHS B7 nurse. 31 years full time work... no break in service... I took the smaller lump sum of 50k and get a monthly pension of £1650.

I haven't read the full thread but wanted to post as your initial forecast sounded low to me.

You lose special class status by leaving the NHS, so your pension age reverts to 60.

You came out of the pension 2 years ago at 53. If you had stayed in and you work until you are 67 you would get a vastly improved pension. I am afraid that is the stark reality for most.