Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • butterfly72
    • By butterfly72 22nd Jan 11, 9:15 PM
    • 1,134Posts
    • 1,095Thanks
    butterfly72
    NHS Pension lump sum to be taxed?
    • #1
    • 22nd Jan 11, 9:15 PM
    NHS Pension lump sum to be taxed? 22nd Jan 11 at 9:15 PM
    I've heard that the government are considering taxing the 'tax free' lump sum we get on retirement. Anyone else heard this? Could they really do this?

    It's just getting better.... payfreeze, high cost of living area freeze, increment freeze, no increase on my mileage allowance, more tax, more NI, pay more for my pension..... Christ, I'm gonna be paying them to go to work soon!
    Saving towards my house deposit
    Saving extra in my pension
    Spending on my passions - dressage & eventing
    2015 in 2015 challenge. 0/2015
Page 1
  • dunstonh
    • #2
    • 22nd Jan 11, 9:31 PM
    • #2
    • 22nd Jan 11, 9:31 PM
    I've heard that the government are considering taxing the 'tax free' lump sum we get on retirement. Anyone else heard this? Could they really do this?
    There is no such proposal or even a hint of a rumour. Its one of these myths that goes around from time to time and has done for over 30 years. It seems to be doing the rounds in the NHS at the moment as you are third NHS member to ask this on these forums. Most workplace stories are false and spread by know it alls (who know nothing) or jaded troublemakers who do it maliciously.
    I am a Financial Adviser. Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
  • Burridge60
    • #3
    • 22nd Jan 11, 9:44 PM
    • #3
    • 22nd Jan 11, 9:44 PM
    They might re launch the scheme without this for new staff entrants. But given the Government's declared aim to slim down the NHS in theory they shouldn't be employing new staff for some time to come so it is unlikely to deliver any massive savings.

    There is no knowing what a future Government might do in defence of the State. Extending State Retirement Age was already Government Policy and now it is Government Policy to accelerate this further. The same Government just a different hue.
    I am a Mortgage Advisor
    You should note that this site doesn't check my status as a Mortgage Advisor, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Loughton Monkey
    • By Loughton Monkey 23rd Jan 11, 12:41 AM
    • 8,707 Posts
    • 12,424 Thanks
    Loughton Monkey
    • #4
    • 23rd Jan 11, 12:41 AM
    • #4
    • 23rd Jan 11, 12:41 AM
    You need to be concerned that you are quite low down in the "NHS Rumour Food Chain".

    This worthless, idiotic, baseless, ill informed rumour was 'doing the rounds' well before Christmas. You need to ask why you have only just 'heard' of this tripe. After all, what if, for a change, you get a "truthful" rumour within the NHS? You might find it has happened before you get to hear of it.

    Firstly, cast this thought completely from your mind. Secondly, sharpen up your grapevine.
  • fionadc
    • #5
    • 23rd Jan 11, 3:20 PM
    .
    • #5
    • 23rd Jan 11, 3:20 PM
    Can I also say, as a fellow NHS Employee, that at least 2 of the cuts you list have not taken place, certainly not in my healthboard anyway. I was under the assumption that pay related issues were national rather than decided at healthboard level? Therefore I can only assume you are misinformed and you should look into this.
  • Cautious Investor
    • #6
    • 23rd Jan 11, 4:12 PM
    • #6
    • 23rd Jan 11, 4:12 PM
    Hi

    For any change to take place to the tax free lump sum it would have to be doen across the board i.e. not only to the NHS but all pension schemes of any sort.

    However, like others on here I have heard nothing over the past couple of years to indicate a change is even being considered let alone on the way.

    The Cautious Investor
  • cnile
    • #7
    • 24th Jan 11, 10:34 PM
    • #7
    • 24th Jan 11, 10:34 PM
    Hi
    I am also an NHS employee and have recently taken my pension early then returned to work on reduced hours. I spent a great deal of time looking at all the options before making my decision.

    At no time did I hear of the lump sum being taxed. I must admit that the possibility of further government changes in the future swayed my decision.

    There have been major changes recently to the NHS pension scheme from the 1996 to the 2008 section. Information on this can be obtained from the NHS pension site.
Welcome to our new Forum!

Our aim's to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,682Posts Today

8,258Users online

Martin's Twitter