NHS pension Nightmare.

[Pickledonion1999]

I have a deferred NHS pension which I can take at 60 in two years time. I requested a forcast three years ago have based retirement plans on this figure. I have now requested an update and it has come back at half the amount. To say I am devastated is an understatement. I will now have to work many more years longer. How can they get things so wrong ? They are looking into it but now I'm terrified it could drop even lower. has this happened to anyone else? I know I should have checked the first statement more thoroughly. I'm gutted. All those years of hard work and crap mental health because of doing such a difficult job for what ??

I don't know much about pensions but could it have been based on your retirement age? 67/68? Rather than 60

No I think they had my final salary down at something ridiculous like 75k. I've never earned more than 30k .

Guessing you put in a different retirement date - 66 perhaps not 60

how much is in the pot?

I would look carefully at your original letter and the age / year payment was commencing. It could be the amount quoted 3 years ago assumed you retired closer to 70/ did not factor for early retirement.

The fact you are taking it early will also be a reason for the drop.
The nhs announced new change factors re: early retirements

www.nhsbsa.nhs.uk/change-factors-affect-early-or-late-retirement?utm_source=chatgpt.com

No I don't get a choice. It is deferred and has to be taken at 60.

That's not how NHS pensions work.

Is it 95 section, OP. If so you're right about 60 being the normal pension age - and unlike the 2008 and 2015 versions it doesn't have an uplift if you delay taking it.

Unfortunately NHS Pensions is notoriously crap at calculations - between 5% and 10% are wrong. You need to work out the figures yourself (inflation uplift is tricky but you should be able to get near enough to check their work).

Are you in one of the Facebook groups - NHS Pensions member of the Pengage one? They're both helpful.

You may also want to ask MN to edit your OP to ask people to please not reply unless they specifically understand the NHS scheme. These threads are always full of people trying to apply DC pension advice. Well meaning, but unhelpful.

60 is not early for the 95 section, which is what most people are in if they're of retirement age and have been out of the NHS for a while.

Do you have access to an online portal? These usually have calculators which can be helpful for looking at different scenarios.

So the mistake is based on them noting you at the wrong, higher salary? That's a crazy mistake. I wonder if you share a name with someone else who is earning that higher salary. If your pension is now forcasted at your correct salary then there's nothing for it but to mourne I think, the loss of what was never yours. But there might be more mistakes, log in to your pension and check the details.

That would be a simple explanation as to why it was double what it should have been.

The statement that they frequently get it wrong is very worrying as I am in receipt of an NHS widows pension since my doctor OH died 6 years ago. He had not paid into the scheme for many years as he became too ill to work and retired from the NHS at age 42 and did locums instead.
When he died I had expected to get something from NHS but when the figures came through it was about twice what I expected at about £12k a year.
I queried it with them twice and each time they said it was correct, and it has been dropping merrily into my account ever since.
I always have this worry at the back if my mind that one day they might demand it back!

They were a nightmare when I took my 1995 pension with SCS. I literally had no idea what I was going to get just a ballpark figure. But I have carried on in the NHS working part time and paying into the 2015.
Are you eligible for the McCloud remedy? But obvs that depends on when you deferred.

@Pickledonion1999 have you actually looked online as it’s very easy now even with a deferred pension . I left the NHS at about 48 and am 60 very soon , I was very part time for most of my working life . I filled out the forms to get my pension a couple of months ago and the communication from the NHSBA has been excellent and what I’m actually going to get is slightly more than it said online when I first checked in Jan this year . Can’t fault the service .

Yes I understand why they got it wrong just so gutted that this could happen and how it can happen.

But did you not realise by the forecast 3 years ago that with a 75k year salary which would have been on the paperwork you would have been at least a high band 8 when you deferred. What band were you?

No pot it's a final salary pension

If the “value” of the pension has dropped, this is normal. Pension value is based on interest rates. If interest rates increase 1% then the pension value typically drops around 20%.

3 years ago the 20 yr gilt yield was 4.5%, today it is 5.6%, so a large drop in value between the two dates would be expected,

However, in the NHS final salary scheme, value is irrelevant. You get the same amount per annum regardless of value, unless you plan to transfer out, (which your FA would be unlikely to recommend).

If in fact, your per annum amount has dropped, then this will be as they miscalculated it either on your current statement or on your statement 3 years ago, which sucks, but happens. If it has messed up your retirement planning you may be able to complain and receive compensation.

Is it 1995 OP? And how many years in it? And when did you stop/what were you on at that point?

Just might help if we can roughly calculate the figures?

How worrying for you. Unfortunately I assume the small print says the forecasts are estimates? Did the forecast from before show your correct salary?

I have a LGPS pension, I understand the concern.

Yes 1995. I've been nursing since 1986 but lots of gaps and part time / went abroad for a few years etc they calculated at 17.5 years. The last few years were complicated. My last job which I think they are calculating it on was for an organization which allowed me to stay in NHS pension scheme but I was not on a band as not a nursing job. Sorry i know that sounds vague. I realize this is my fault for not noticing the 75k and not really understanding the statements but just don't understand how they could get that figure so very wrong. A friend also checked the statement and didn't pick up on the mistake. Not blaming her of course. Just feeling stupid and gutted.

It might not be terribly wrong, does the current estimate add McCloud or are you not entitled to that

I left the NHS scheme in 2019 so the mccloud would only cover a few years and I have very little in the later scheme.
I guess will just have to carry on working. Fortunately I love my latest role.

It’s probably my father using all the pension money. He retired from the NHS in his 50s and is now in his 90s.
he’s been drawing his NHS pension for more years than he worked for the NHS.