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What to do ? NHS pension / S&S / SIPP or other
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Hi again,
I just wanted to say that we've been told by nhsbsa that additional pension is paid from SRA not 67. So more like 68/9. A small tweak but if you're bridging it with other funds you need them in place.Save 12 k in 2018 challenge member #79
Target 2018: 24k Jan 2018- £560 April £26700 -
Some potentially-useful links:
NHS Additional Pension Calculator (covers all of the NHS schemes)
2015 Scheme ERRBO (Early Retirement Reduction Buy Out) factsheet
1995 and 2008 NHS Scheme Early/Late Retirement factors (Note that the 1995 scheme pension doesn't get increased if you defer taking it by a few years, but the 2008 scheme pension does)
2015 NHS Scheme Early/Late Retirement factors (From Appendix B; deferring taking your 2015 scheme pension by each year will add roughly 3.5% to your main pension and roughly 6% to any additional pension contributions)
Deferring your STATE pension (currently adds just under 5.8% per year)
A quick example of bumping up a 2015 NHS Scheme's annuity (via plugging the above figures into my own pension spreadsheet, and ignoring inflation):
Deferring both NHS and State Pension by 1 Year: ~£1259.28 added to yearly annuity.
By comparison, £1250 per year via additional pension from the 2015 scheme would cost a lump sum of £9,000.
Deferring both NHS and State Pension by 2 Years: ~£2567.97 added to yearly annuity.
By comparison, £2500 per year via additional pension from the 2015 scheme would cost a lump sum of £18,000.
So after you're confident that you have sufficient bridging provision in place to tide you over until you reach your State Retirement age, buying Additional NHS Pension from the 2015 Scheme would indeed appear to be quite a good use of any extra cash you have lying around...
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Do investigate purchasing NHS Additional Pension. This is different from AVCs and extra years.
Someone around your age could pay £8,800 lump sum for £1000 pa pension payable from age 67. This date cannot be changed. It is an annuity fixed and guaranteed, index linked before and after payment. You would also get tax relief on that £8,800 - (you will need to claim it back from HMRC though)
Since it could be paid for up to 30ish years most people find it incredibly good value when considering their options but obviously do your own research.....
Thanks - I'll look into it moreSave 12K in 2020. Number 130 -
Some potentially-useful links:
NHS Additional Pension Calculator (covers all of the NHS schemes)
2015 Scheme ERRBO (Early Retirement Reduction Buy Out) factsheet
1995 and 2008 NHS Scheme Early/Late Retirement factors (Note that the 1995 scheme pension doesn't get increased if you defer taking it by a few years, but the 1998 scheme pension does)
2015 NHS Scheme Early/Late Retirement factors (From Appendix B; deferring taking your 2015 scheme pension by each year will add roughly 3.5% to your main pension and roughly 6% to any additional pension contributions)
Deferring your STATE pension (currently adds just under 5.8% per year)
A quick example of bumping up a 2015 NHS Scheme's annuity (via plugging the above figures into my own pension spreadsheet, and ignoring inflation):
Deferring both NHS and State Pension by 1 Year: ~£1259.28 added to yearly annuity.
By comparison, £1250 per year via additional pension from the 2015 scheme would cost a lump sum of £9,000.
Deferring both NHS and State Pension by 2 Years: ~£2567.97 added to yearly annuity.
By comparison, £2500 per year via additional pension from the 2015 scheme would cost a lump sum of £18,000.
So after you're confident that you have sufficient bridging provision in place to tide you over until you reach your State Retirement age, buying Additional NHS Pension from the 2015 Scheme would indeed appear to be quite a good use of any extra cash you have lying around...
Thanks again Maelwys
more really usefull info to look through Save 12K in 2020. Number 130
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