NHS early retirement avoiding reduction

kidmugsy

I don't see why you feel you must both start the pension and sell your house. Surely if you sell the house you could live off the capital and its earnings while letting the pension defer until you are 60. Wouldn't that be more cost effective? You should still have enough capital left to boost your income until age 66 when your State Pension sets in.

`releaseme

May be worth thinking about indeed.

paparossco

If you are 55 and planning to go in three years time at 58 anyway have you thought about grade reduction? Your pension is based on the best of your last 3 years so you could drop to a lower band with reduced responsibility and retire at 58 on the same pension. Apart from any band increments we are not going to see any inflationary increases over this time.

`releaseme

Thanks to everyone for the suggestions. As stated, the one option I am not keen on is remaining in the employment of the NHS where I live, as the way things are being done is what is stressing me out - no trust in those with the power, and seeing all the good people being forced out.

However, yesterday was thoroughly depressing with such a strong consensus about what I'd be giving up and it has got me thinking along different lines, which is a really positive outcome. I had not really thought about "preserving" my pension, and looking for a different sort of job to fill in a couple of years. My husband is working, quite low paid job but fairly equivalent to what we'd be living on in retirement. He probably has 2 years to go.

I am also wondering whether I could bite the bullet and stay at work a little while longer if I went part-time so that it is a much smaller part of my life.

My husband has also suggested selling the house sooner rather than later and renting so that could be an option.

Any more bright ideas welcome!

kidmugsy

I recommend that you get an estimate of what your State Pension is eventually going to be. In particular, have you accumulated the 30 years of National Insurance Contributions needed to justify a full pension? (Maybe some can be replaced by Home Responsibility Protection - you should read up on that.) If you haven't, but could do so by working just a little bit longer, then it must be tempting to work on, even if it is for a different employer.

`releaseme

Hi- as already stated within this thread, I am entitled to a full state pension.

moonrakerz

`releaseme wrote: »

Hi- as already stated within this thread, I am entitled to a full state pension.

A "full state pension" is NOT the same as "what your State Pension is eventually going to be".

I really feel that you have little idea of what your hasty (cunning ?!) "plan" is going to lead you into - financial difficulties in a few years !

`releaseme

Please tell me what you mean. I have had a state pension forecast and I get the maximum amount based on 30 working years.

jem16

`releaseme wrote: »

My husband is working, quite low paid job but fairly equivalent to what we'd be living on in retirement. He probably has 2 years to go.

So you are aware that your husband would get half of your pension if you die before him. Plus I would imagine that there is a lum sum benefit should you die in service.

All that would be lost if you transferred out.

`releaseme wrote: »

Please tell me what you mean. I have had a state pension forecast and I get the maximum amount based on 30 working years.

There is the basic state pension which is what I assume you are referring to. The 30yrs contributions entitles you to that.

There is also SERPS/S2P which can increase the basic pension. Whilst you are in the NHS pension scheme you are contracted out of SERPS/S2P but you may have been entitled to some from a previous job if you had one.

`releaseme

Thanks for that....my death in service benefits are a great joke between husband and I.....I'm watching my back!!!!!