The 'new' NHS pension?

Trifid

Hello.

Does anyone know and understand the 'new' NHS pension?

As I understand it, I will receive 1/60th of my total earnings but is this linked with inflation? As obviously £1 today will be worth a lot less in 45 years time (or 43 when I reach the 'service limit'). If it is linked with inflation it seems far too generous? This may be because I'd have hit the service limit? But obviously if it is not it will be worth next to nothing?

Also, what happens to the pension if I was to move out of the NHS? Would I keep it with them and withdraw the small amount that is saved up with it when I retire or can I transfer it to another pension fund?

Anyway, far too young to be thinking about retirement!

Thanks.

JoeCrystal

How about reading your pension booklet which I am assuming that this public sector pension scheme must have...

Beside you are already thinking of this in your twenties... That is very good sign...



Lastly, you got one of the best pension scheme in the country and any IFA will rather shoot themselves than to touch it.

Trifid

I've had this question since my 'teens...

I've scanned through the document and couldn't find anything relating to it, and their examples don't factor in inflation (all done at today's money).

molerat

Each year you are a member of the scheme you earn 1/60th of your pay as a pension. When you retire you get your earned 60ths paid at the wage you are on at retirement (not exactly true, a best average is used). If you leave the scheme the pension is frozen at (years in the scheme)/60ths of the wage at the date of leaving and is increased by inflation each year until you get to pensionable age. It is all in the booklet http://www.nhsbsa.nhs.uk/Documents/Pensions/SDNG.pdf

Trifid

So it makes sense that I will retire on roughly the equivalent of the money that I started on assuming that I don't get promoted and only progress through the pay band?

Thanks for your replies.