Pension help

[Nurse1989]

Hello 👋

I currently work for the NHS and contribute to a pension. I have been paying into this for almost 14 years however for most of that time I have been working part time hours (raising DCx2) so the pot is not as good as it could have been

I have another 30+ years before retirement age but my husband will only have state pension and a very small 'people's pension' that was introduced by government a few yrs back.

My NHS pension is now in line with state pension- you can retire sooner but I have been told your pension is massively reduced if you do this.

So I want to be able to save another pension pot or boost my NHS one (if that is even an option) but I have no idea where to begin.

I'm afraid of going with a pension and loosing everything because they are dodgy or go bust or god knows. I'm so clueless. Any advice or any idea who to go to for further info.

All help appreciated

Options (can mix and match):

• Buy down your NHS retirement age. You will currently have pension in 2 sections of the NHS scheme - 2008 and 2015. The 2008 pension has a fixed normal pension age of 65. The 2015 NPA is linked to state pension age, so will change if the state age does. You can pay extra each month to bring the 2015 age down to 65.
• Buy extra in the 2015 pension. You can do this by paying a lump sum, or by monthly deductions from salary like the normal pension payments. This buys you a set amount extra each year, which you can only take at the same time as the main pension. It will increase with inflation.
• AVCs (additional voluntary contributions) to a private pension through the NHS. This is a defined contribution pension like a normal private pension, but the NHS sorts it out for you.
• Organise your own payments to a completely separate private pension or SIPP.

Options 1 and 2 give you more certainty; options 3 and 4 more flexibility (and the possibility of higher growth but also a risk of lower growth).

Re early retirement with the NHS scheme, you're right that it's reduced for taking early. But not by an enormous amount - approx 4 - 5% for each year before normal age. The earliest you can take it is 55 for the 2008 and 10 years before NPA for the 2015.

And while you get less each year, it is paid for more years - so you dont necessarily get less overall. It's calculated to work out the same for someone meeting average pife expectancy.

Can your husband also increase his pension?

Your trust should run free 'understanding your pension' sessions. Ask your HR dept.

Thank you 😊 this is really helpful. I will get in touch with the pensions department to discuss these options. Even if I just bring it down to 65- that is better than 68. Genuinely don't understand how I would do my role at 68 🙈

Thank you, that's actually very reassuring as people made it sound like you get a lot less but I suppose it makes sense if you are being paid it for longer

I'm not 100% sure if he can or not. It's the People's pension that the government introduced a few years ago saying all employers had to make sure their employees had pensions. His company contribution is very minimal like 2-3%. Not sure of my husbands contributions but it's not much at all. However I don't think he would up them as he is only slightly above minimum wage and I think extra contributions would bring him below that which wouldn't be allowed. He's on track for full state pension tho.

We unfortunately don't own our home to several different circumstances since the children were born but we do have a lifetime tenancy. But this means we will still have rent to pay in retirement. If we owned we could of been mortgage free which would have been one less payment but with renting we wouldn't qualify for housing help because of my pension so I need to make sure that between us both we will recieve enough to cover all bills including rent and have some to actually be able to do things in retirement but it feels like we are going to be worse off right now. I know I have 30+ years to make sure that isn't the case which is why I am looking into all our options.
I tried to book onto a pension session in my trust but they said for the next few sessions they are focusing on those closer to retirement age :(

If you're on Facebook, join the following groups:

'NHS Pensions chat: member led.discussion group' https://www.facebook.com/groups/565069481354506/?ref=share run by amateur pension members, not pension professionals, but some of them really know their stuff - better than a lot of the pension service employees.

NHS & Public Sector pensions information' (can't link to that one because it's on pause for a few days some reason, she's probbly on holiday). Run by someone from Pengage financial advisers. She gives free webminars as well, if you can't get onto your local ones.

Some good info above. It’s easy to take out a pension (SIPP) with Vanguard or Interactive investor. Very cheap providers and safe (regulated by FCA). You can do it all online without paying an advisor.

With 30 years to go is it worth revisiting buying a property rather than increasing your mortgage?

Talk to others at work. The NHS scheme lets you take your pension early and keep working. Some people choose to take a smaller pension at 55 or 60 and then work part time until state pension. Depending upon on your role it can be a good way to manage the years before SP.

We've never been in a position where we have been able to save enough for a deposit. Husband is just above minimum wage and I've had to work part time hours on and off for the past 12 years due to childcare needs as my son is autistic. I genuinely don't ever see us with a big enough deposit to buy. If we ever did our mortgage would have to be over a very short term too due to our ages so the monthly payments would be another factor to consider.

If you are above minimum wage, could your husband go part time and you full time?

What steps is your husband taking to get to a position where he can earn a decent wage? Why is this all on you?

dB pensions aren’t massively reduced by taking them early - you are getting the same amount over a longer period and it’s a net gain should you die after taking it say 5 years early.