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  • FIRST POST
    mrsb74
    NHS Pension, should i join?
    • #1
    • 21st Jan 12, 9:54 AM
    NHS Pension, should i join? 21st Jan 12 at 9:54 AM
    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
Page 1
    • jem16
    • By jem16 21st Jan 12, 10:00 AM
    • 18,364 Posts
    • 11,025 Thanks
    jem16
    • #2
    • 21st Jan 12, 10:00 AM
    • #2
    • 21st Jan 12, 10:00 AM
    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
    • By bitterpill 21st Jan 12, 10:05 AM
    • 49 Posts
    • 72 Thanks
    bitterpill
    • #3
    • 21st Jan 12, 10:05 AM
    • #3
    • 21st Jan 12, 10:05 AM
    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
    • #4
    • 21st Jan 12, 10:13 AM
    • #4
    • 21st Jan 12, 10:13 AM
    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
    • By jem16 21st Jan 12, 10:20 AM
    • 18,364 Posts
    • 11,025 Thanks
    jem16
    • #5
    • 21st Jan 12, 10:20 AM
    • #5
    • 21st Jan 12, 10:20 AM
    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?
    Originally posted by mrsb74
    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
    • By gfplux 21st Jan 12, 10:46 AM
    • 1,701 Posts
    • 1,727 Thanks
    gfplux
    • #6
    • 21st Jan 12, 10:46 AM
    • #6
    • 21st Jan 12, 10:46 AM
    Bite their hand off.
    Trying to play by the rules.
    • JoeCrystal
    • By JoeCrystal 21st Jan 12, 11:04 AM
    • 1,115 Posts
    • 611 Thanks
    JoeCrystal
    • #7
    • 21st Jan 12, 11:04 AM
    • #7
    • 21st Jan 12, 11:04 AM
    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
    • By jem16 21st Jan 12, 11:09 AM
    • 18,364 Posts
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    jem16
    • #8
    • 21st Jan 12, 11:09 AM
    • #8
    • 21st Jan 12, 11:09 AM
    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.
    Originally posted by JoeCrystal
    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
    • #9
    • 21st Jan 12, 11:25 AM
    • #9
    • 21st Jan 12, 11:25 AM
    You normally get a statement annually.
    Originally posted by jem16
    Not in the NHS scheme.
    • jem16
    • By jem16 21st Jan 12, 11:26 AM
    • 18,364 Posts
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    jem16
    Not in the NHS scheme.
    Originally posted by Koicarp
    Do you get statements at all then?
    • corbyboy
    • By corbyboy 21st Jan 12, 12:01 PM
    • 1,137 Posts
    • 1,378 Thanks
    corbyboy
    Do you get statements at all then?
    Originally posted by jem16
    In five years in the scheme I have never had one.
    • jem16
    • By jem16 21st Jan 12, 12:10 PM
    • 18,364 Posts
    • 11,025 Thanks
    jem16
    In five years in the scheme I have never had one.
    Originally posted by corbyboy
    Seems pretty poor then. With my Teachers' pension I receive an annual statement.

    At least it allows you to see if their pension record with regards years of service agrees with yours.
    • little_miss_moneysaver
    • By little_miss_moneysaver 21st Jan 12, 12:34 PM
    • 1,230 Posts
    • 7,653 Thanks
    little_miss_moneysaver
    I have been with the NHS pension for almost 8 years and I had a statement not long ago. There is a "newer" style pension where I think the age has gone up to 65 and they were trying to persuade us "oldies" to change over. I'm sure I have have had more than one statement in the past. I don't know whether the statement was done centrally or our Trust's finance people. It had the forecast etc in there. Although the government are trying to mess with the pension I think it's still going to be one of the best
    Baby boy arrived 22nd August 2012
    Second menace arrived safely 13th February 2014
    Debt Free Wannabee 2015
    • Andy L
    • By Andy L 21st Jan 12, 12:51 PM
    • 7,516 Posts
    • 5,578 Thanks
    Andy L
    Seems pretty poor then. With my Teachers' pension I receive an annual statement.

    At least it allows you to see if their pension record with regards years of service agrees with yours.
    Originally posted by jem16
    I've got the feeling that you get pensionable service shown on your P60
  • mrsb74
    thanks for all of your comments, yes it is the new style pension i will be in, in my book it says the age is 65, i will join it, just wanted to hear some more views as you always see on the news people moaning about the pensions, my mother in law is ex nhs and she said not to do it but i will, thanks
  • Koicarp
    I have 18 years in the NHS scheme and never had a statement, neither has my wife with similar service. I think there is one sent out once we get into our early 50's as a friend with equal service to me got one recently. We can request one at any time.
    • atush
    • By atush 21st Jan 12, 2:59 PM
    • 14,605 Posts
    • 8,679 Thanks
    atush
    Yes, join it ASAP.

    As for extra contribs, you mention you don't own a home at the moment. Are you planning to? Do you have 6 months in spending saved in cash (preferably ISAs)? If you want a house, and you don't have emergency savings I would address these things before you add more to your already very good pension.
    • tanith
    • By tanith 21st Jan 12, 3:00 PM
    • 7,929 Posts
    • 8,488 Thanks
    tanith
    As others have said 'bite their hand off', I would be really really struggling without my NHS pension I am so glad that I joined .
    #6 of the SKI-ers Club

    "All that is necessary for evil to triumph is for good men to do nothing" Edmund Burke
    • jem16
    • By jem16 21st Jan 12, 3:57 PM
    • 18,364 Posts
    • 11,025 Thanks
    jem16
    my mother in law is ex nhs and she said not to do it
    Originally posted by mrsb74
    Out of interest did your mother-in-law say why she thought you shouldn't join?
    • JoeCrystal
    • By JoeCrystal 21st Jan 12, 4:07 PM
    • 1,115 Posts
    • 611 Thanks
    JoeCrystal
    Out of interest did your mother-in-law say why she thought you shouldn't join?
    Originally posted by jem16
    Yeah, bearing in mind that it would be one of the worst financial decision you could ever made.

    Cheers

    Joe
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