NHS Pension Choice - dilemma due to Hutton Report?

Jarvojarvo

dunstonh wrote: »

There are generally three different methods used when updating a scheme.

1 - all existing members stay on their existing scheme and changes only apply to new members
2 - You are forced to move over to the new scheme for future membership only and that your entitlement built up on the old scheme will remain in place.
3 - Your old pension is closed and bulk transferred to the new one.

Option 1 isnt being considered with the NHS. Option 2 appears to be the most likely one. So, your 1995/2008 entitlement will remain within those scheme rules but future build up of entitlement will be on "2015" (or whatever they call it).



On the basis you want to retire at 60, will you have the finances in place to do that? It may be an aspiration but is it realistic? you are looking at going three years before the current national average retirement age and 7 years (probably 8 as the 68 age is likely to be brought forward with possibly a 69 and 70 introduced) before the state pension age.

Im just wondering what to do, 28 years in NHS aged 47 , I want to retire early but know I will lose a chunk if I go at the earliest time, which is 50 for me in the 1995 scheme that I am opting to remain in. When are the Hutton reforms coming in and what is the optimum age to stay working until without getting hammered by Hutton. any ideas welcome and grateful for.

jebervic

Jarvojarvo wrote: »

Im just wondering what to do, 28 years in NHS aged 47 , I want to retire early but know I will lose a chunk if I go at the earliest time, which is 50 for me in the 1995 scheme that I am opting to remain in. When are the Hutton reforms coming in and what is the optimum age to stay working until without getting hammered by Hutton. any ideas welcome and grateful for.

I thought earliest you could retire in 1995 scheme was 55? and this would be at a reduced rate for every year before 60

jackyann

I think this is a mis-print. The 1995 scheme assumed a retirement age of 60.
The pre-1995 scheme had a retirement age of 60, or 55 for "special classes" (nurses, midwives, health visitors & mental health officers).
There is a special website for NHS pension choices that has a calculator so you can play around with your options.

Keegan

Hi all,

I was wondering if anyone could offer me some advice as this pension stuff really confuses me. I am a 29 year old psychologist and I am in the 1995 pension scheme. Like others I have been offered the chance to move to 2008. I originally thought it would be beneficial to stay in the 1995. However, after much consideration I am wondering if I am better in the 1995.
My quires are

• I have not had children yet and when I choose to do so I will want to work part time for a few years. Therefore my contributions to my pension will drop. I started in the NHS around 6 years ago and started on £12,000. I now have the potential to earn about £50,000. I will hopefully achieve this in my 40s and hope to stay on this wage until I take retirement. If I understand correctly this would favour the 1995 scheme, as they will not take an average earnings at the end.
• I must admit I do enjoy my work and I can’t see myself retiring at 60. I believe this would favour 2008, as I will work longer and therefore could have a better pension.
• I am very unsure about the lump sum and this is not really impacting on my decision.
• I will possibly be entitled to the special class status as I plan to work in mental health services for the duration of my career.

It is so hard to make these decisions now when I am so young and I don’t know what the future holds. Does anyone have any advice?
Thank you

Dr_Wu

Keegan

I can only really address your last point with any certainty, but sadly you will not be entitled to special class status as that scheme ended to new entrants in March 1995 i.e all those who joined after that date do not qualify for special class/MHO status.

Andy_L

The option to change ended in March this year. Dont worry to much, the 2008 is worse than the 1995 scheme and both are to be replaced, for future service, with a scheme that is, for most employees, worse than both