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. I paid for a session with Laura from this team and it helped me understand so much more about my pension (different employer to you but still public sector). Well worth it.

So take the money and invest it each month

If you invest £800 a month, in 10 years you could have an extra £96,000 even without interest and then you could have another £700/£800 a month on top of your existing £800

All you are doing is catastrophising

Ah - I missed that info!

Op I think that £1,000 spent on Ifa who specialises in NHS Pensions could be the best money you've ever spent.

Only those year though, every other year WILL be. Entitled to go but no comp!

There is a lot of misunderstanding on here about NHS pensions.

OP is likely to have been in 95 scheme which has a normal pension age of 60. If she was an active member and doesn’t claim her pension at age, she would be missing out on monthly payments from when the pension was due.

However, OP having left service and the pension scheme 2 years ago (at around 53 years old), she is now a deferred member. If the pension was claimed after 60 by a deferred member, it would be backdated. By leaving before age 55 (unless made redundant) she will have lost SCS and therefore the normal pension age will be 60. If taking the 95 pension at 55 it will be reduced as it will be paid out longer. There are reduction tables on the pension website.

McCloud will have some impact. I am not sure if those who are now applying to retire are receiving pension statements which include McCloud choice, or if statements still only show rollback. OP will need to take this into account either when claiming the pension or when contacted in due course. Some of us won’t get choice until December 26 (assuming things don’t slip further).

It also looks like OP has opted to take the largest possible lump sum, which will reduce the monthly payments figure.

There was mention of a financial advisor who knows nothing about NHS pension scheme. Personally I would find someone who is clued up with NHS pension scheme.

Also, regarding the amount growing - whether or not the amounts have been reduced for taking it early, your pension payments will increase with inflation each year. This doesn’t sound a big deal, but in the long term it is a hugely important factor.

OP I’ve just found this NHS document that states that for special status that states that you need to be in a role that qualifies for it for the five years before you retire and that you lose it if you leave pensionable NHS employment before 55. If you left the NHS at 53 then you lost your special status at that point hence you getting a much lower pension. If you’d waited till 60 it would be much higher.

Like yourself do you know what scheme she in
there many factors including 2 mat leaves and was she always a FT band 7

@Stillearninglife your special status only applies to the 1995 section of the scheme, and will not apply to your membership to the 2008 or 2015 scheme sections. Check this information below:
https://www.nhsbsa.nhs.uk/sites/default/files/2023-09/Special%20Class%20status%20%2895%20only%29%20employer%20factsheet-20220305-%28V1%29.pdf

This means by taking at 55 your 2008 and 2015 sections will be reduced by early retirement factors.

When you left the NHS did you not get a pensions forecast and if so did this agree with what you are being told now?
Did you join the pension scheme as soon as you started work or did you join at a later point?
If you have over 30 years of service £800 per month doesn't sound right.

So many misconceptions about the NHS pension scheme and how great it is…

I would say that is quite wrong. You are losing out by taking it early. You need some advice.

I don’t think that’s right. If you leave it there it continues to grow just like investments. And then it would be recalculated for a new retirement age of, say, 65. This would be higher because it would be paying out for a shorter period. You need to take advice - try PensionWise.

You’re on here calling people numpties who don’t know anything. Bit rude when it turns out you’ve made an error. And sadly it seems so has the OP.

Sounds like leaving the nhs at 53yo may have made a massive difference.

The NHS pension is almost the best pension in the country. What you have to think is that if you worked in pretty much every other industry your pension would be about a third or less than your current one.

Complain about your job, the people you worked with, the hours, the facilities blah, blah, blah but complaining about your pension is ridiculous and insulting to everyone else in this country who has worked just as hard as you but will have a tiny pension by comparison!

Are you sure it's best to take now?
Not nhs but I have 2 final salary pensions which will give me about £16000 a year from 62. One of them I left in 1996 and one in 2011. Both have continued to grow with inflation etc. (Else the 1996 one would be worth about 800 a year instead of 6000).
I would go to pension wise or similar and get some really good advice, based on facts before you take it now. Unless you desperately need the money now, put off claiming until you are retiring.

@Stillearninglife get yourself onto one of the webinars that Pen-gage run for free to get a better understanding of your pension including what to look out for when claiming it.

So how many people have to pay in so one person gets £800 a month?

Plus, if you take it now whilst still earning you will likely be taxed on the pension in payment. Please take some proper advice about this.

Have you checked if you have the right to ‘special status’ so your pension is not reduced at 55? Are you entitled to the full 33 years or has that been reduced for being part time? My 40 years was worth 25 years - it looks as though you’ve taken a much bigger lump sum and that would reduce your monthly pension.
Your options are to push for special status; if you can’t get it wait until you’re 60 and reduce the lump sum so your monthly pension is enough to cover living expenses.
It’s a good pension and better than not having been in the scheme; it is hard when you’ve moved around and I would check the statement they’ve given you down to the annual level.

I have no way of making a comparison, but just for your info, I receive a pension as the named person on my late OH's contributions. Because he became ill and unable to continue working as a GP, he left the pension scheme at age 42 so his contribution record was consequently pretty weedy.

However I receive around £1000 pm, and was initially concerned that this might be an overestimate, but have been reassured on several occasions that this is correct. I have my fingers crossed that they will not be asking for some of it back at some point!

I took my pension from NHS at age 65 (6 years ago). Was on top band 7. Based on 17 years full time equivalent on the 95 scheme, I got 25k lump sum and get circa £850 a month pension (after tax) - this amount goes up each year as inflation taken into account by pension people. It seems that your pension will be much higher than this if you wait until you are older to take it,

Retiring due to ill health is quite different from choosing to retire early AFAIK.

This. It really shows how important it is to get proper advice before making huge decisions about work and retirement. I don’t blame the OP for leaving at 53, though.