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  • FIRST POST
    vinuela13
    NHS Pension forecast-Can I retire at 50?
    • #1
    • 17th Sep 11, 4:18 PM
    NHS Pension forecast-Can I retire at 50? 17th Sep 11 at 4:18 PM
    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
Page 1
    • Lokolo
    • By Lokolo 17th Sep 11, 4:20 PM
    • 19,490 Posts
    • 14,449 Thanks
    Lokolo
    • #2
    • 17th Sep 11, 4:20 PM
    • #2
    • 17th Sep 11, 4:20 PM
    Why are you planning on taking the reduced one if you plan on continuing to work? (even elsewhere)
    • JoeCrystal
    • By JoeCrystal 17th Sep 11, 4:25 PM
    • 1,114 Posts
    • 611 Thanks
    JoeCrystal
    • #3
    • 17th Sep 11, 4:25 PM
    • #3
    • 17th Sep 11, 4:25 PM
    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
    • By jem16 17th Sep 11, 4:26 PM
    • 18,363 Posts
    • 11,023 Thanks
    jem16
    • #4
    • 17th Sep 11, 4:26 PM
    • #4
    • 17th Sep 11, 4:26 PM
    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.
    Originally posted by diddlyidi
    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
    • #5
    • 17th Sep 11, 4:30 PM
    • #5
    • 17th Sep 11, 4:30 PM
    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
    • #6
    • 17th Sep 11, 4:31 PM
    • #6
    • 17th Sep 11, 4:31 PM
    Why are you planning on taking the reduced one if you plan on continuing to work? (even elsewhere)
    Originally posted by Lokolo
    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
    • By Lokolo 17th Sep 11, 4:32 PM
    • 19,490 Posts
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    Lokolo
    • #7
    • 17th Sep 11, 4:32 PM
    • #7
    • 17th Sep 11, 4:32 PM
    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
    Originally posted by diddlyidi
    Which rumours are these? Pub talk?

    The government will very much unlikely make the lump sum taxable.
  • Unclepetey
    • #8
    • 17th Sep 11, 4:33 PM
    • #8
    • 17th Sep 11, 4:33 PM
    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
    • #9
    • 17th Sep 11, 4:34 PM
    • #9
    • 17th Sep 11, 4:34 PM
    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
    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.
    Originally posted by snowcat53
    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
    Which rumours are these? Pub talk?
    Originally posted by Lokolo
    These have actually come from the pensions team at the Hospital
    • jem16
    • By jem16 17th Sep 11, 4:49 PM
    • 18,363 Posts
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    jem16
    These have actually come from the pensions team at the Hospital
    Originally posted by diddlyidi
    The worst rumours always seem to come from the NHS pension department.
  • vinuela13
    Why seek another job? Why not continue to work for the NHS?
    Originally posted by jem16
    The Trust that I work for is looking to get rid of staff at the moment. Morale is very low and bullying and threats are becoming more commonplace
    • JoeCrystal
    • By JoeCrystal 17th Sep 11, 4:55 PM
    • 1,114 Posts
    • 611 Thanks
    JoeCrystal
    So for working another 5yrs and risking my lump sum being taxable I don't really appear to gain very much
    Originally posted by diddlyidi
    An increase of 25% in income. index-linked and the 'cost' of pension to you is small in comparison [Basically an level income of £1,080 could require a fund of £25,116. Index-linked income cost more. In other word, you are paying modest £80 per month rather than £420 per month (Not certain about that last number though)].

    Tax Free Lump Sum as other points out clearly is not going to be taxed. IF government want to do it, they will have to do a consultation for years!

    Cheers

    Joe
    Last edited by JoeCrystal; 17-09-2011 at 5:10 PM.
  • snowcat53
    I also know people in our Pensions dept. They know no more than Joe Bloggs in the pub. These soothsayers predicting the end of tax free lump sums will be nowhere to be found when they are proved to be wrong and you want to berate them in 10 years time.
    You have been warned.
    • atush
    • By atush 17th Sep 11, 11:10 PM
    • 14,581 Posts
    • 8,667 Thanks
    atush
    The Trust that I work for is looking to get rid of staff at the moment. Morale is very low and bullying and threats are becoming more commonplace
    Originally posted by diddlyidi
    The rumors are false, and if the trust is looking to get rid of people, don't retire and look for a voluntary redundancy offer instead.

    If you do decide to go ahead with this (IMO) bad idea, then find a job before you retire.
    • dunstonh
    • By dunstonh 17th Sep 11, 11:31 PM
    • 82,555 Posts
    • 47,645 Thanks
    dunstonh
    These have actually come from the pensions team at the Hospital
    So a complete bunch of unqualified and low knowledge idiots then.

    You only have to look back on this forum to see how the NHS staff seem to have the most consistent misinformation about pensions going. That is also reflected by those of us in the advice industry where the NHS staff seem to be worst informed and the ones most prone to rumours and rubbish from workmates.

    I have concerns that the lump sum will soon become taxable if the government has anything to do with it.
    There has not even been a whiff of a suggestion of it. It is highly unlikely that a Conservative Govt would do it considering the bulk of pension legislation that exists today was theirs to begin with.

    Planning your financial future on a bunch of idiots is not the way to do it.
    I am an Independent Financial Adviser (IFA). 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.
    • atush
    • By atush 18th Sep 11, 8:11 AM
    • 14,581 Posts
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    atush
    Probably the worst disaster Private pensions have ever undergone, was the raid by Gordon Brown in his early days of chancellor when he taxed the dividends on our (formerly tax free) pensions. Wiped Billions off the value and growth of all pirvate pensions.

    So I am not sure that you should be afraid of the Con/dems on this matter really.

    I too am shocked at the ignorance (to be fair to information given) of the public sector NHS workers on here. Their Unions and HR are really not earning their gold plated salaries and pensions in the way that they are letting down and misinforming or not informing their members.
  • moonrakerz
    I too am shocked at the ignorance (to be fair to information given) of the public sector NHS workers on here. Their Unions ........... are really not earning their gold plated salaries and pensions in the way that they are letting down and misinforming or not informing their members.
    Originally posted by atush
    What do you expect from public sector unions ?

    The greater the state of fear and ignorance that they keep their members in, the better for them.
    The unions leaders are just as much money grabbing hypocrites as the bankers and politicians are.
  • StephenM
    These have actually come from the pensions team at the Hospital
    Originally posted by diddlyidi
    Sorry to go off at a tangent, but why does a hospital need a pensions team. Its a national pension scheme, presumably with a centralised department running it. I don't think there's anything localised about the NHS pension scheme, so what does a local pensions team actually do.
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