NHS pension with added years

Spirit_2

I have 18 years in the NHS pension scheme I also have a contract to buy 9 added years. If I were to retire at 60 I would have (including the added years 37/80).

Unfortunately, it is unlikely that I wil remain well enough to work until 60, and as I have some significant health issues I may want/need to retire in 5 years time at 54.

From the literature it appears I cannot retire and defer my pension for a few years, but have to take it at retirement or wait until I am 60 . Have I read this correctly?

If I take it at 54 what will happen to my added years they will have run for 14 years ratheer than 20 which is what I am contracted for.

What is the abatement for retiring 6 years early and taking pension.
I do not want to hang on until I may be forced to take ill health retirement.

All advice would be welcome - sorry for so much detail

exil

I'm in a similar boat, well enough to work now at 49 but not at all sure I'll still be able to carry on till 60. In my case early retirement is not an option unless my employer agrees to it.... I wonder if the same applies in your case.....?????

You won't be able to retire in 2013 at 54 - the new minimum for early retirement is 55, so you won't be able to go until 2014.

I think your added years will be subject to reduction as will the basic pension - and the rate is usually 5% or so per year - so around 25% for 6 years early.

Like you I dread being forced into ill health retirement - since I would still want to work, having been forced out wouldn't look good....

It's possible to take money out of a pension scheme and put it in a personal pension and draw it at any time from 55 but I understand this is not usually a good idea.

dzug1

Your added years will buy you the proportion of full time service you have paid for. So if you were due to pay the extra contributions for 10 years but only pay for 5, you will get half the added years expected.

I would imagine (but am not certain) that the actuarial reduction for going early would also apply.

If you are forced into ill health retirement (ie by your employer) then in some circumstances they will 'give' you extra years up to your official retirement date. Not sure how added years fare in this circumstance.

bigjl

Just looking through the archives and came across this thread, if you are buying added years under the 1995 scheme then if you are medically retired before completing the agreed contract of extra payment you will ne gifted the whole entitlement that you where buying, but only if you get ill-health retirement granted and don't get sacked on capability grounds.