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  • FIRST POST
    • Lastditch
    • By Lastditch 4th Jan 18, 11:16 PM
    • 1Posts
    • 0Thanks
    Lastditch
    Drawing a deffered nh s pension whilst still working
    • #1
    • 4th Jan 18, 11:16 PM
    Drawing a deffered nh s pension whilst still working 4th Jan 18 at 11:16 PM
    I have a deffered nhs pension which I can draw on my 60th birthday,however i will still be working in a different organisation until I'm 65.taking the pension will push me into a higher tax bracket and I will lose child benefit also.Do I have any other options than to draw the pension and take the hit?
Page 1
    • xylophone
    • By xylophone 5th Jan 18, 12:56 AM
    • 24,033 Posts
    • 14,038 Thanks
    xylophone
    • #2
    • 5th Jan 18, 12:56 AM
    • #2
    • 5th Jan 18, 12:56 AM
    Let's suppose a deferred scheme pension pays £13,000 a year and your job pays you £45000 a year.

    You now have taxable income of £58,000 a year.

    But you could choose to pay sufficient of your earned income into a pension scheme to keep the CB?

    https://www.unbiased.co.uk/news/tax/how-to-avoid-the-child-benefit-tax-charge

    http://www.pruadviser.co.uk/content/knowledge/technical-centre/child_benefit_trap/

    http://www.pruadviser.co.uk/content/knowledge/technical-centre/tax_relief_members_contributions/

    https://www.gov.uk/tax-on-your-private-pension
    • bluenose1
    • By bluenose1 5th Jan 18, 8:44 AM
    • 1,936 Posts
    • 3,122 Thanks
    bluenose1
    • #3
    • 5th Jan 18, 8:44 AM
    • #3
    • 5th Jan 18, 8:44 AM
    Do you have to take your deferred NHS pension when you are 60? I thought you could decide yourself when to start using pension.
    I have a deferred NHS pension and assumed it was up to me whether to have it payable from 60.
    Money SPENDING Expert

    • Andy L
    • By Andy L 5th Jan 18, 9:28 AM
    • 8,703 Posts
    • 7,082 Thanks
    Andy L
    • #4
    • 5th Jan 18, 9:28 AM
    • #4
    • 5th Jan 18, 9:28 AM
    Do you have to take your deferred NHS pension when you are 60? I thought you could decide yourself when to start using pension.
    I have a deferred NHS pension and assumed it was up to me whether to have it payable from 60.
    Originally posted by bluenose1
    Assuming its one of the older NHS pensions with a normal retirement age of 60 and thus not subject to acturial reduction for taking it early then I don't think theres an option to have an increased penion by taking it later ie theres no benifit to not taking it as soon as you can
    • saucer
    • By saucer 5th Jan 18, 3:42 PM
    • 77 Posts
    • 9 Thanks
    saucer
    • #5
    • 5th Jan 18, 3:42 PM
    • #5
    • 5th Jan 18, 3:42 PM
    ...and add to that, if it is a combiation of the old scheme (ie 1995 or 2008) and the new scheme we are all on (2015) then you can take the old portion of it reduction free at 60 and wait until your retirement age, or any point before that (subject to reduction for early payment) to take the rest. E.G putting it simply if 2/3 of your years were in one of the old schemes up until 2015 and 1/3 is after 2015, you can take 2/3 at 60 without any reduction (and would be mad not to!) and the rest later.
    • purdyoaten2
    • By purdyoaten2 5th Jan 18, 4:28 PM
    • 780 Posts
    • 362 Thanks
    purdyoaten2
    • #6
    • 5th Jan 18, 4:28 PM
    • #6
    • 5th Jan 18, 4:28 PM
    Assuming its one of the older NHS pensions with a normal retirement age of 60 and thus not subject to acturial reduction for taking it early then I don't think theres an option to have an increased penion by taking it later ie theres no benifit to not taking it as soon as you can
    Originally posted by Andy L
    Option 5: Late Retirement
    This option is open to all members of the NHS Pension Scheme.
    Impact on benefits
    1995 section
    For members of the 1995 Section, this option means that if they choose to retire later
    than their 60th birthday, they can continue to earn pension, but no increase is applied for
    retiring late.

    So - service length can be increased up to the maximum but no actuarial 'increase'.
    purdyoaten lost his password
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