Nhs pension v private

dunstonh

he didnt say much, though did try to defend himself and couldnt work it out how NHS can be better

Thats because he doesnt know what he is talking about. Its so obviously better when you look at the details. I know its your friend but this is a very common scenario across the UK. Workmates and friends who know a little but think they know a lot can do a lot of damage if you listen to them.

In simple terms, to match the benefits of the NHS scheme, it would cost you around 20% of your salary each month. How much are you paying yourself into the scheme?

zygurat789

natsnannie wrote: »

PS told my friend what's been said - he didnt say much, though did try to defend himself and couldnt work it out how NHS can be better - I really couldnt either but we have left it at that and will remain friends and I will remain with NHS!

Employer puts in lots more than the employee
Final benefit is based on final salary
Pension is indexexed to RPI

To name just three very juicy reasons

getmore4less

mitchaa wrote: »

Your information relates to the old scheme. (Post April 2008 = New. Pre April 2008 = Old, with option to transfer)

Old pension scheme = 45/80max and 3x pension lump sum
New pension scheme = 45/60max with no lump sum.

56.25% FSP vs 75% FSP

I thought the calculation of final salary changed as well

I forget exactly but seem to remember potentialy much lower.

With the old scheme you could do enhanced shifts for a year to boost the pension, for most people 30%+ even if they were allready doing some mixed shifts and went onto nights or just worked weekends/BH part time for example.

In the extreme you could just do 4 shifts in one of the last 3 years on the 60% enhanced rate and get the uplift due to the prorata system for part timers.

I think the new is average of the best 3 in the last 10 so potentialy not so good not sure of the part time effect.

natsnannie

I think 5 % dunstonh

dunstonh

natsnannie wrote: »

I think 5 % dunstonh

So, your answer is that you pay 5% to get the NHS pension and to get the same benefits in a personal arrangement would cost you around 20%.

magpiecottage

Just to confirm what has been said, and in particular what DunstonH said.

I used to calculate what, if anything people had lost by not joining occupational schemes as part of the Pension Review ordered by the regulator in the mid 1990s. It was unusual to see any case where opting out left somebody better off and I NEVER saw it for the NHS/Local Government/Teachers etc.

The losses were always large and would be even bigger now. The benefits are fully inflation proofed and paid for out of taxation so it is, in effect a bottomless pit. The cost to the employer (i.e. the taxpayer) is whatever it costs less your contribution, without limit.

Some people get nervous of final salary pensions because they will not provide as much as you are earning but remember you will not pay National Insurance on it, you will have no commuting costs, the children will (hopefully) have flown the nest and the mortgage might well be paid off.

You can all with supplement it with other investments if you wish but take what they are offering.

natsnannie

Thanks again folks.

Kaz2904

jh2009 wrote: »

Remember that state pension age increases to 68 (and possibly 70) for all those who are born after April 1978 so for any decent sort of retirement you'll need to have made some sort of personal provision.

:eek::eek::eek::eek: I'm a nurse on a CCU. My birthday is 29th April 1978- am I safe? I've been in the NHS pension twice. Once for a short time 1999-2000 and then again September 2002. I never took back my pension payments from the initial pay in and they have assured me that it has now been combined.
We have not been given the option to decide between moving to the new pension or staying with our current one yet. We've also not been given any info.

My gut feeling is that it would be better to stay with my current one as they wouldn't be changing it for the better!

Sorry to hijack your thread OP!

firesidemaid

unless something has changed again, i thought the deadline for moving to the new scheme had already come and gone?

dizzyblonde82

I remember getting a leaflet at work about the date for final pension decision and i think it is sometime next year or even 2012, at the time someone joked about where we could keep the leaflet safe until then!

ETA: http://www.nhsbsa.nhs.uk/Choice.aspx has all the information about when final choices need to be made.