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?

How much have you paid into your pension? If you live for another 40 years the £800 a month payments come to £384k plus you’re getting a lump sum too, this is a huge amount of money as a total!

i know it grows,
if you leave the nhs
and some years later claim the pension, you might have to wait until after the age of 67 but it will have grown, i am not a numpty

Join the nhs Facebook pensions group. Check your lump and annual - is it not three times the annual and if so you must be looking at an option to take maximum lump sum rather than maximum monthly pay out? That isn’t usually the best deal when taken at 55

My DC is doing a medicine degree. I tried to inform them of the working conditions in the NHS but they were determined so I fully support their choice. However, I am always looking at industry related jobs for Drs and at the moment we are in discussions about the intercalating year in medicine. I am trying to counsel them on only doing something they are passionate about in the hope that they won’t just do it to tick a box. If they ever did want to leave the NHS an industry related masters would be beneficial.

My DH and I both left the NHS but we are happy with our NHS pensions because at the time when we looked at what we would have needed privately it was a lot more than we had paid in. The inflation linked and spousal benefits are excellent too. Both in 95 scheme.

Numpties 🤣 not heard that in years!
Thanks for your advice though before you go. Xx

It is inflation linked too.Spouses get 50% survivors benefit in 95 scheme too.

I think you need to explore the different elements of the pension, if I understand it correctly only the 1995 scheme has special status.

So anything in the 2008 or 2015 will be reduced massively if you take it early.

You may want to consider taking the 1995 and leaving the rest for now as that part will grow.

How much were you paying in?

I’m on DC, so appreciate it’s very different - but I pay £1,100 into my pension every month (£1,500 including employers contribution), and if I retire at 55 after 33 years of contributions I can expect £1,300 a month after lump sum.

So I get about a third more out per month than I personally put in. If you paid in less than £600 p/m, you’re still getting a pretty good deal on your NHS pension.

You will be losing 20% retiring at 55 plus that’s a significant lump sum - do you need to take the lump sum as monthly payments would be higher

have you checked your tax?

Mine (civil service) wouldn’t be a huge amount at 55, but at 67 it’s a huge amount. 55 is young to retire so presumably you can work part time as-well if it’s not enough to live on.

Monthly pension payments varied month to month as I did a mix of day shifts and night shifts so my pay varied depending on that. It was never the same amount.
It always seemed a bloody lot and I remember grumbling as a young un with a mortgage and renovation costs but I paid in nevertheless without missing.

Depends on the scheme whether or not you get more by not taking it. I have one pension where annual payments are exactly the same if I take it at 60 or 65. People are making a lot of assumptions.

Yes. I have a financial advisor who is looking into that for me. Only just found her and she is fab but admits to knowing little/nothing about NHS pensions unfortunately.

I have to be honest OP, this doesn’t sound great for a Band 7 with that many years. My defined benefit pension (not NHS and not as good as NHS) which is 33 years made up of 24 final salary and 9 career average) is 17.5k and a lump sum of 52k if taken at 60. I can increase that by waiting longer to take it or use the PIE option to increase it now, with only part index linked. My salary when I left was probably equivalent to a Band 6.

I would have lost a lot taking it at 55. I don’t understand the NHS protected pension getting it at 55 and not losing anything, I know a Band 7 matron that has just retired at 60 with forty years service and she’s getting substantially more than I will.

I would get over to the Martin Lewis pension forum and ask for clarity on there, there are some amazing pension experts very generous with their time and experience and who have worked for all sorts of major employers including the NHS.

could you go without the 80k if you want higher monthly payments?

The scheme penalises you very heavily for taking it below state pension age. Try increasing your retirement age. It’s not how much is in the pot it’s how long they think they will need to pay out for

Are you sure you had SC, not everyone did and some lost it as they moved jobs.

Your lump sum does seem high. Was there an option for a lower lump sum and higher monthly payments?

Thank you. Martin Lewis is my guru!

The theory I suppose is that Nursing is a brutal profession where longevity in the job is unlikely.

So they are offering a buffer for those who cannot go on physically or mentally until 65/67.

As a port pp stated, her back is fucked, the job involves manual handling, you just can’t go on.

Same here, plus the PTSD, from the traumatic experiences I’ve dealt with over the years. Yep, brutal.

Again… specialist status. No reduction.

That doesn’t seem right. I have an old (deferred) pension from working for 10y at a council in my youth before leaving in 1997 to go to a better paid private sector job (the money was crap so I left), and even that is worth a £16k lump sum and £500/month if I take it at 60 (doesn’t get any better after 60, but penalised for every year taken before 60).

My local gov DB pension reduces by 5% for every year I opt to take it before pension age (67).

I know this seems a kick in the teeth but honestly OP. You are quite young getting an extra £800 a month whilst still working. Put that £800 towards your current pension (offset more salary into pension) and this will really create a great pot for you later. Remember you may live until 80/90 + and so this is going to be 40 odd years of a guaranteed amount.

I have a really great private pension that I worked hard to build up and it's a very large pot. But by the time I hit 85/90 it will be gone (if I retire at 60 which was my plan). So whilst you may be angry with the loss of years (and so you should), try to look positively on the guaranteed amount

Same job front line for over 30 years.