NHS Pension forecast-Can I retire at 50?

vinuela13
vinuela13 Posts: 186 Forumite
in Pensions, annuities & retirement planning
Hi
I have recently received my pension forecast and it looks like I may be able to take a max lump sum at 50yrs and then a reduced annual pension.
I have been nursing since I was 18yrs and am now 48.
I am eager to take the lump sum and use this as an investment to provide an income when I no longer want or am unable to work.
The lump sum is quite a substantial amount but the annual pension will only provide me with a monthly income of around £350.
I willl actively seek work when I retire from the NHS and hopefully secure another job.If however I am unable to gain employment straight away will I be entitled to receive any other benefits to top up my monthly pension?
Thanks in advance
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Comments

  • Lokolo
    Lokolo Posts: 20,861 Forumite
    First Post First Anniversary
    Why are you planning on taking the reduced one if you plan on continuing to work? (even elsewhere)
  • JoeCrystal
    JoeCrystal Posts: 3,011 Forumite
    Name Dropper First Anniversary First Post
    Well, what make you think you can get better return from the lump sum? If you need more income but not cash, then just do not take lump sum. Beside, can you work after age of 50 and get better pension anyway? You only got 30 years service, ten more years can increase the annual pension after all.
  • jem16
    jem16 Posts: 19,397 Forumite
    Name Dropper First Post First Anniversary Photogenic
    diddlyidi wrote: »
    Hi
    I have recently received my pension forecast and it looks like I may be able to take a max lump sum at 50yrs and then a reduced annual pension.

    The age when you can take it, even actuarially reduced, is now 55.
    I am eager to take the lump sum and use this as an investment to provide an income when I no longer want or am unable to work.

    Your lump sum will also be actuarially reduced by taking it early. However main question is why would you want to take it out of a tax-free shelter which has no investment risk to you, to bring it into a taxable environment where all the risk is on you? This makes no financial sense at all.
    I willl actively seek work when I retire from the NHS and hopefully secure another job.

    Why seek another job? Why not continue to work for the NHS?
  • snowcat53
    snowcat53 Posts: 602 Forumite
    Taking your pension early massively reduces what you get, and for the rest of your life. Not sure it's allowed at 50 now anyway.

    On the face of it this doesnt seem to make much sense. There is no way you can invest that to get more than the extra pension you would have leaving it in.
  • vinuela13
    vinuela13 Posts: 186 Forumite
    Lokolo wrote: »
    Why are you planning on taking the reduced one if you plan on continuing to work? (even elsewhere)
    I'm planning on taking the max lump sum asap. I have concerns that the lump sum will soon become taxable if the government has anything to do with it.Rumours are that this could happen overnight if they make this decision
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    First Post First Anniversary
    diddlyidi wrote: »
    I'm planning on taking the max lump sum asap. I have concerns that the lump sum will soon become taxable if the government has anything to do with it.Rumours are that this could happen overnight if they make this decision

    Which rumours are these? Pub talk?

    The government will very much unlikely make the lump sum taxable.
  • Unclepetey
    Unclepetey Posts: 55 Forumite
    Long-serving NHS staff have a protected minimum pension age of 50. So I suspect the original poster is right that he/she can retire at 50 and receive their benefits.
  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
    You can't claim JSA (even the 6 months contributions based) with a pension of that amount. In fact, you won't be able to claim any means tested benefits with a substantial amount of capital.

    This sounds like a really bad idea unless you can find another job first.
  • vinuela13
    vinuela13 Posts: 186 Forumite
    snowcat53 wrote: »
    Taking your pension early massively reduces what you get, and for the rest of your life. Not sure it's allowed at 50 now anyway.

    On the face of it this doesnt seem to make much sense. There is no way you can invest that to get more than the extra pension you would have leaving it in.
    I don't intend to stay in the NHS past 55yrs old
    I have been playing around with the figures and the difference in lump sum if I retire at 55 as opposed to 50 is approx £6k and my monthly pension would only go up to £440 per month. My contribution to my pension over the 5yrs that I would continue to work would be approx £4800, parking costs £900,union subs £600, nmc registration £380.
    So for working another 5yrs and risking my lump sum being taxable I don't really appear to gain very much
  • vinuela13
    vinuela13 Posts: 186 Forumite
    Lokolo wrote: »
    Which rumours are these? Pub talk?
    These have actually come from the pensions team at the Hospital
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