NHS pension

honey06

hi,

just a query- if I were considering a change in lifestyle, how would i go about changing my NHS pension to a SIPP, with a view to using some of this to invest in a business property?

atush

You would not be able to go about it at all.

There is nothing you can do with your NHS pension, Sipp or otherwise, to get more than you will already get with your NHS pension. Between employers contribs, indexing and other gurantees there is nothing onthe openmarket to compare to what you get.

If you want to retire earlier or same/later/better than your current projections, save more outside into AVCs or Isas and Cash. And reduce current spending to the level you expect you will be able to live on/

honey06

hi Atush,
thanks for the reply.

i wasnt meaning that i want to try to get more per se, but to support a change of career by converting it to a SIPP and investing in the business property for my new career?

JoeCrystal

Almost impossible. Only less than 1% of the Defined Benefit schemes are better off if transferred. And you need an IFA to approve the transfer and they would in almost in all cases, will not approve it since you will certainly lose out. NHS after all these past changes and upcoming changes will still be one of the best pension scheme in the country.

Cheers

Joe

dunstonh

A transfer of a defined benefit scheme into a SIPP would require an IFA to sign off on it. statistically 99 times out of 100 its best to stay in the defined benefit scheme.

Some IFA firms do allow you to overrule their advice on pain of significant disclosures and cost due to the high risks involved.

atush

honey06 wrote: »

hi Atush,
thanks for the reply.

i wasnt meaning that i want to try to get more per se, but to support a change of career by converting it to a SIPP and investing in the business property for my new career?

Having a change of carrer incl one that is a self employed/entrepreneurial is exicgting and financially difficult.

While you will not be able to transfer your NHS pension into a sipp for this purpose, there is nothing stopping you settin up a SIpp now and keep paying into it once your new business has started. Your Acct will tell you that paying yourself a pension out of income/operating expenses can be a great idea.

I suggest renting premises until you make some sort of success of your venture, then maybe use built up Sipp finds to help with property.