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  • FIRST POST
    • louloubelle79
    • By louloubelle79 5th Jul 17, 6:11 PM
    • 196Posts
    • 91Thanks
    louloubelle79
    Additional payments into NHS or private
    • #1
    • 5th Jul 17, 6:11 PM
    Additional payments into NHS or private 5th Jul 17 at 6:11 PM
    Hello
    Can anyone advise? Have NHS pension started last year (age 37) work part time so minimal in there. Have 3 other small pension pots from previous employers.

    Would I be better paying into additional payments in NHS scheme (2015) or setting up private pension? My NHS retirement age is 65.

    Thank you
    Hoping to be mortgage free by 2026 age 47
    Current rate 2.79% fixed for 10 years
    Current mortgage end date: 03/10/2043
    MFW Starting Mortgage Jan 17 - £114,703
Page 1
    • quotememiserable
    • By quotememiserable 5th Jul 17, 7:16 PM
    • 390 Posts
    • 253 Thanks
    quotememiserable
    • #2
    • 5th Jul 17, 7:16 PM
    • #2
    • 5th Jul 17, 7:16 PM
    It doesn't make a lot of difference. You can't put extra money into the NHS defined benefit side, you buy into their Additional Volutary Contribution pot, which is more or less the same as a private pension. Would you select your own investments, or just go with the default fund? If you'd go default you may as well keep it simple and go NHS.
    • Andy L
    • By Andy L 5th Jul 17, 7:40 PM
    • 8,470 Posts
    • 6,773 Thanks
    Andy L
    • #3
    • 5th Jul 17, 7:40 PM
    • #3
    • 5th Jul 17, 7:40 PM
    It doesn't make a lot of difference. You can't put extra money into the NHS defined benefit side, you buy into their Additional Volutary Contribution pot, which is more or less the same as a private pension.
    Originally posted by quotememiserable
    you can still buy additional pension instead of AVCs. You can't buy "extra years" like you could in the old schemes

    "You can buy any amount in units of £250 annual pension up to a maximum total purchase
    of:
     £5,000 annual pension if you are a member of the 1995/2008 Scheme
     £6,500 annual pension if you are a member of the 2015 Scheme,"

    https://www.nhsbsa.nhs.uk/sites/default/files/2017-02/Additional%20Pension%20%2802.2017%29%20V4.pdf
    • claire111
    • By claire111 6th Jul 17, 11:25 PM
    • 190 Posts
    • 46 Thanks
    claire111
    • #4
    • 6th Jul 17, 11:25 PM
    • #4
    • 6th Jul 17, 11:25 PM
    "you buy into their Additional Volutary Contribution pot, which is more or less the same as a private pension"

    Just plain wrong.

    Purchase of 'NHS Additional Pension' is similar to purchase of a Retirement Annuity and for many people is astonishingly good value and should be investigated and considered as part of their pension plan by anyone employed by the NHS, or anyone married to anyone employed by the NHS.
    • xylophone
    • By xylophone 7th Jul 17, 8:35 AM
    • 23,110 Posts
    • 13,395 Thanks
    xylophone
    • #5
    • 7th Jul 17, 8:35 AM
    • #5
    • 7th Jul 17, 8:35 AM
    https://www.nhsbsa.nhs.uk/member-hub/increasing-your-pension

    Additional Pension is not the same as AVC.
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