NHS Pension forecast-Can I retire at 50?

Just_Some_Guy

atush wrote: »

This actually brings to mind how salary average rather than final salary is more fare to most NHS workers, esp the low paid.

Average salary schemes are a lot better in many regards:

* They are cheaper to run than final salary schemes (so less likely to be closed on you)

* The funding calculations are simpler (so expensive surprises to your employer are less likely)

* And if like most people you don't get promoted to the upper levels of management then the end result is roughly the same as the final salary amount (inflationary indexing is great)

To be honest the union argument about final salary vs career average has more to do with picking a fight with the oppressive Tory regime than looking out for their members' interests. The pension age increase is a different matter (having it go up by 1y for every 2y that life expectancy goes up, so you get one year more of retirement for one year more of work, seems fair to me but I don't want to start a holy war here!)

gadgetmind

chookmom wrote: »

Oh, they were right then. I am lucky to have this job.

As with every job, you have to take the rough with the smooth, and it sounds like to work/politics are very rough, but the financial side seems to be very smooth.

traineepensioner

#32..."Average salary schemes are a lot better in many regards:".....Only for the employer

My pension changed from a final salary pension (DB) to a Career average pension (DC) in 2009. Individual pension contributions over each year are increased by the percentage pay increase or inflation....whichever is the lowest! :mad:
Inflation (RPI) is running at over 5% but our pay freeze/increases have been a lot less, so the individual pension pots are slowly eroding. You only get a good increase in years were both inflation & pay rise are high.

The career average pension is a very poor alternative for the employee....but excellent for the employer.

My advice would be to sit tight but be ready to jump ship if offered a good redundancy package.

gadgetmind

traineepensioner wrote: »

Inflation (RPI) is running at over 5% but our pay freeze/increases have been a lot less

Ditto in the private sector, and the increases have been on a lower base pay too. In fact, they reckon the public sector would need a total pay freeze until 2018 to allow the private sector to catch up.

I know for sure the unions won't go for that, so the private sector will probably be trailing for decades to come.

vinuela13

chookmom wrote: »

Oh, they were right then. I am lucky to have this job.

Hi Chookmum
I too am sick of hearing managers telling us we that should be grateful that we have got a job.I find it quite insulting and demoralising.
I have worked my socks off for the past 30yrs striving to maintain high standards and deliver quality patient care.
I think that the Trust that I work for should consider themselves fortunate to have me as one of their employees.
There is a lot of reconfiguration going on at the moment because the Trust is in so much debt( familiar story).My question is... shouldn't it be the people who allowed us to get into this financial mess to be the first ones for the firing line.
Anyway rant over, the reason why I want to retire at 50 is because I am getting more and more disheartened with the way the NHS has changed. I want to leave whilst my professionalism is still intact.I wouldn't want my practice to be jeopardised just so the managers can meet their targets and save their own skins.Under no circumstances am I prepared to compromise patient care.

snowcat53

traineepensioner wrote: »

#32..."Average salary schemes are a lot better in many regards:".....Only for the employer

My pension changed from a final salary pension (DB) to a Career average pension (DC) in 2009. Individual pension contributions over each year are increased by the percentage pay increase or inflation....whichever is the lowest! :mad:
Inflation (RPI) is running at over 5% but our pay freeze/increases have been a lot less, so the individual pension pots are slowly eroding. You only get a good increase in years were both inflation & pay rise are high.

This is not the change that is being proposed in Public sector pensions. Both Final salary and career average pensions in this case are Defined benefit (DB) - ie linked to the salary not to the value of a pot dependent on stock market performance. It is very clear that some are big winners from the final salary system, notoriously many medical consultants who get huge boosts in salary (what used to be called merit awards) in their last few years.

JohnB47

diddlyidi wrote: »

I don't intend to stay in the NHS past 55yrs old
I have been playing around with the figures and the difference in lump sum if I retire at 55 as opposed to 50 is approx £6k and my monthly pension would only go up to £440 per month. My contribution to my pension over the 5yrs that I would continue to work would be approx £4800, parking costs £900,union subs £600, nmc registration £380.
So for working another 5yrs and risking my lump sum being taxable I don't really appear to gain very much

But don't forget the wages you'll be getting during that period. There's no point assessing the pros and cons of a decision and ignoring a big pro.

gadgetmind

snowcat53 wrote: »

ie linked to the salary not to the value of a pot dependent on stock market performance.

This is unrealistic and unsustainable.

chookmom

FYI I get 36.9p a mile for my 1.4 car

NOSTRADAMUS

Aaaah...

The NHS ..a financial black hole.
Even bacteria cannot escape it's gravitational pull.


I would take the cash as soon as possible and forget the pension.
As for investing..most definitely...in what though is your call.

A £300/month pension won't pay your gas/electricity and 'community tax' (so much nicer sounding than Council tax) bill in 10 years.