NHS Pension, should i join?

mrsb74
mrsb74 Posts: 24 Forumite
in Pensions, annuities & retirement planning
Hi everyone,
I am due to start a new job in a couple of months working for the NHS, i have had a book come through the post today about the NHS pension scheme, i have had a look but it still does not make sense!!
What i can gather is that i will be opted in and pay 5% of my wages into it each month. I dont currently have any pension schemes in place and i dont own any property.
I am looking to stay working for the NHS and i am just looking for a bit of advice, do i stay at the 5%, or maybe put in a bit more and is the scheme worth paying into to? I am 31 and have nothing in place at the moment.
Thanks
:rotfl:
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Comments

  • jem16
    jem16 Posts: 19,397 Forumite
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    You would be very foolish not to join the NHS pension scheme. At the moment it's a final salary scheme so your pension is calculated on number of years service and your final salary. It is guaranteed and no investment risk to you. There are changes being proposed to all the public sector schemes which will see it change to a career average scheme but this is still way better than any alternative.

    The only way to pay more into the scheme is to buy Additional pension. This may be a good idea or you may be better using a S&S ISA. This very much depends on your current/ future tax status.

    Meanwhile join ASAP!
  • bitterpill
    bitterpill Posts: 51 Forumite
    As above, silly not to join. I work in the private sector and would bite your hand off for such good provision. Good luck in your new job!
  • mrsb74
    mrsb74 Posts: 24 Forumite
    Thanks for your replys, yes i will join for sure, no doubt when i do i should get some sort of forecast for the future? This might sound a silly question but when you retire do you automaticly get your state pension plus money from your private pension? I really am new to this pension stuff lol.
  • jem16
    jem16 Posts: 19,397 Forumite
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    mrsb74 wrote: »
    Thanks for your replys, yes i will join for sure, no doubt when i do i should get some sort of forecast for the future?

    You normally get a statement annually. It's pretty easy to work out though with a final salary pension. You take your salary, divide by 60 and multiply by years of service.

    This might sound a silly question but when you retire do you automaticly get your state pension plus money from your private pension? I really am new to this pension stuff lol.

    Yes you would get your state pension plus NHS pension.
  • gfplux
    gfplux Posts: 4,985 Forumite
    Photogenic First Anniversary First Post Hung up my suit!
    Bite their hand off.
    There will be no Brexit dividend for Britain.
  • JoeCrystal
    JoeCrystal Posts: 3,008 Forumite
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    Well, mrsb74. Join it as soon as possible and be glad that there is something you do not have to worry about like investment risks. However, I do wish to mention that it might be worthwhile to look at other avenues at retirement savings. jem16 mentioned S&S ISA which is good but thinking about saving into personal pension scheme might be worthwhile if only to have option on when to start your pension. For example, NHS pension scheme may have higher retirement age and this could be good way to bridge the gap as it is. But then, S&S ISA and personal savings could do the job as well. :)

    Cheers

    Joe
  • jem16
    jem16 Posts: 19,397 Forumite
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    JoeCrystal wrote: »
    Well, mrsb74. jem16 mentioned S&S ISA which is good but thinking about saving into personal pension scheme might be worthwhile if only to have option on when to start your pension.

    Main reason I mentioned S&S ISA for extra provision was that it is more flexible than the pension and would be more suitable for a basic rate taxpayer as there is no great tax advantage as she would be a taxpayer in retirement. It would certainly work for bridging the gap as you can withdraw what you like unlike with the pension.

    If higher rate taxpayer, additional pension is definitely the way to go.
  • Koicarp
    Koicarp Posts: 323 Forumite
    jem16 wrote: »
    You normally get a statement annually.

    Not in the NHS scheme.
  • jem16
    jem16 Posts: 19,397 Forumite
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    Koicarp wrote: »
    Not in the NHS scheme.

    Do you get statements at all then?
  • corbyboy
    corbyboy Posts: 1,169 Forumite
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    jem16 wrote: »
    Do you get statements at all then?

    In five years in the scheme I have never had one.
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