Should I transfer private pension to NHS?

tiptoes27

Thanks very much for taking the time to reply - I appreciate it as I am a complete novice when it comes to pensions which is the reasons it has been left for so long. I only earn £500.00 per month as I am part time, so the IFA fee of £1000.00 is two months salary for me. I have paid enough NI for a basic state pension, but have not paid into my personal ones for about 20 years. As I am now 50, I would like to get it sorted out once and for all! Thanks again.

exil

OK, 1st step is to get the estimate of how much added service your 20k would buy.

tiptoes27

first job for Monday morning!! thanks

Anastasia

Check how long you have got to decide. I do know that when you join the NHS they only give you a certain period to transfer pensions in - just can't remember how long this is.

moneysaver

Anastasia wrote: »

Check how long you have got to decide. I do know that when you join the NHS they only give you a certain period to transfer pensions in - just can't remember how long this is.

It is 12mths from date of joining NHS pension.

My transfer is going through as we speak.:)



Moneysaver

tiptoes27

Right - have taken the first steps.

1. Contacted personal pension provider's to get up to date transfer values and check if pensions have any guarantees annunity rates - they don't.

2.. asked NHS Pension how many years my transfer in pension will buy me - they have said it may take up to four weeks to find this information.

claire111

May I tack on to the end of this thread ?

My previous pension providers transfer of £26,600 will buy me 6 years and 1 month extra membership of the NHS scheme.

I work part time and earn £603 per month gros, (£31 of which goes to pension fund) am 46 and have really no idea what I may earn in the future....

My current providers Illustration estimates my pension will pay out £130 per month when I retire in 2023 age 60 (assuming current contributions continue, investments grow at 7% and inflation 2.5%)

I cannot for the life of me work out whether to transfer or not and like the OP can't afford £1000 for an IFA.

Any thoughts ?

Thanks so much.

dunstonh

My current providers Illustration estimates my pension will pay out £130 per month when I retire in 2023 age 60 (assuming current contributions continue, investments grow at 7% and inflation 2.5%)

What does 6 years 1 months buy in todays terms in the works scheme?

claire111

Thank you for your response-

I have just looked this up in the NHS booklet

"Your annual pension will be 1/60th of your reckonable pay for each year of membership. Part years of membership will also count towards your pension on a proportional basis. (Reckonable pay is the figure used in the calculation of benefits. It is the average of the best 3 consecutive years in the last 10 prior to benefits being taken. Before deciding the best 3 years pay, each year in the 10 year period will be revalued in line with the RPI)"

Is that the answer to your question ?

So sorry - I just can't do pensions......

dunstonh

Is that the answer to your question ?

Not quite. How much is your pensionable salary. Then we can see what 6/60ths equates to in real terms. Its a simplistic comparison but you have told us what real terms projection the personal pension has.