NHS pension query.

[Threedaysaweek2019]

My friend and I pay into the NHS pension. We both printed off our pension forecast to see where are are with it.

From what I can see, the final salary part of it says my original age of retirement is 60, whereas from when it changed in 2015 to a normal pension, the original age of retirement is 67.
Does this mean I can take the final salary pension part at 60 years of age? My friend doesn’t think so, but surely that would have been altered, if it means not being able to take any part of it until 67.
The forecast was dated November 2018.
Any help would be appreciated, thanks 💐.

Every scheme has different rules, but typically...

If you retire at 60, the final salary bit would be paid in full, and the later bit (career averaged?) would be reduced to allow for it being paid 7 years early.

If you retire at 67, there will be no adjustment to the later bit, and the final salary bit will be increased to allow for it being paid 7 years late.

Most schemes won't let you take one bit at 60 and the other at 67. The exception may be if the later bit is defined contribution (so you pay into a pot which is invested) rather than being defined benefit (where the pension is calculated as a proportion of your salary for each year worked). But I'm guessing the NHS is still defined benefit, albeit less generous than it used to be.

Hope that helps, and that someone who knows the scheme can advise.

If you're at the stage where you're making plans for retirement, contact the pensions team who will be able to tell you.

@MindyStClaire, I’m 53, so a bit of a way to go yet, but that makes sense.

Tbh at 53 I think you should start thinking about it - you might make different choices about working hours, promotions etc once you know you're, say, 5 years off retirement.

Thanks @MindyStClaire, I will look into it in more detail.