Added years' contribution, continue or stop

Michaelnameless

I would appreciate help from forum members. I am 43 and have been paying into NHS pension since the age of 32. I have also been paying an extra 9% for added years so that my total NHS pension contribution years would be 40 if I retired at 65. I am a higher rate tax payer.

My question is, is it worth carrying on paying this extra 9% with the new proposed pension changes and higher contribution. Will I lose the added year contribution I have made so far if I suddenly stopped paying the extra contribution? I do not want stop paying the 'normal' pension contribution.

Thank you in advance

jem16

Michaelnameless wrote: »

My question is, is it worth carrying on paying this extra 9% with the new proposed pension changes and higher contribution.

That depends on whether or not you are still going to be short of years to get a full pension. The value of that has not changed.

Will I lose the added year contribution I have made so far if I suddenly stopped paying the extra contribution? I do not want stop paying the 'normal' pension contribution.

Thank you in advance

It is my understanding that as you pay you gain some of the years that you elected to purchase so I don't think you would lose that. However you did make the election to purchase however many years and you may have to complete that.

Really to be sure you need to ask the NHS pension scheme.

Goldenyears

To the OP I would check the 1995? regulations in Q6, Q7 here at http://www.nhsbsa.nhs.uk/Pensions/Regulations.aspx

Because Jem16 may be correct in saying you cannot stop paying the added years contract (other than ill-health retirement or death).

This is very different to the Civil Service scheme I am familiar with where you could stop, take a break and restart once.

snowcat53

The contract to pay Added years normally has to be honoured to the end but there are circumstances in which you can stop paying, including financial hardship - but not sure about other reasons. You need to study the info you were given when you signed up, and ask NHSBA. If they do allow you to stop my guess is you would get years pro rata.