28 years old, NHS Scotland worker pension advice please

hugheskevi

With the way things are just now the government may scrap these type of schemes all together?

So best to take advantage of it whilst its going?

Given the change to schemes from 2015, it is reasonable to think there could be changes to Added Pension too, although there in no particular reason there has to be - it could continue in its current form post 2015 alongside the replacement schemes.

It depends if you consider Added Pension to be something to take advantage of though - unlike extra years, it is far from clear that Added Pension is good value. That isn't to say that it should be dismissed as a possibility, simply that at its current price it looks to be fairly priced as a low risk asset (ie, nothing special that you need to make sure you grab before it goes).

Like any asset, that may or may not be suitable for you, depending on your risk tolerances.

doughuelas

hugheskevi wrote: »

Given the change to schemes from 2015, it is reasonable to think there could be changes to Added Pension too, although there in no particular reason there has to be - it could continue in its current form post 2015 alongside the replacement schemes.

It depends if you consider Added Pension to be something to take advantage of though - unlike extra years, it is far from clear that Added Pension is good value. That isn't to say that it should be dismissed as a possibility, simply that at its current price it looks to be fairly priced as a low risk asset (ie, nothing special that you need to make sure you grab before it goes).

Like any asset, that may or may not be suitable for you, depending on your risk tolerances.

Hmmm, i understand where you are coming from

I am a bit naive when it comes to the pension side of things

It appears as though all you read about is pension horror storys nowadays. Thats perhaps why i was drawn to investigating the additional pension scheme - as it was still under the banner of the NHS...

Would you suggest any alternative areas for further reading?

thanks

dunstonh

It appears as though all you read about is pension horror storys nowadays.

For all the people that say that, they can rarely point to any horror stories. You often see media coverage on changes (rarely the positive changes, just the negative) but I havent seen any horror stories for a good long time. The legislation and protections in place make that very difficult nowadays.

Would you like to give us some examples of a horror story you have seen so we can comment on them?

atush

doughuelas wrote: »

Many thanks for your help

So in your opinion it would make sense at this stage to take up the additional pension scheme?

Ive read so many previous posts over the weekend that the info is all blurring together!

thanks

No, exactly the opposite. I think you should save outside of additonal pension (but join the main scheme) until such time as you have both an emergency cash buffer and a suitable house deposit.

Then I would split my additonal savings between S&S Isas and additonal pension payments. Pension payments are for retirement, but isas and cash isas can be accessed earlier in life when needed so you really need all 3.

You dont' have to put all your savings in one area, and savings should include cash, equtiies, property and pension.

atush

Lots of talk about pension horror stories but not much meat on the bone in recent times.

doughuelas

dunstonh wrote: »

For all the people that say that, they can rarely point to any horror stories. You often see media coverage on changes (rarely the positive changes, just the negative) but I havent seen any horror stories for a good long time. The legislation and protections in place make that very difficult nowadays.

Would you like to give us some examples of a horror story you have seen so we can comment on them?

Hi

these are the most recent i have read. i was made aware of this as my mother is a tesco employee and is a tad cross just now!

http://www.guardian.co.uk/business/2012/mar/13/tesco-pension-changes-work-longer-cpi

http://www.ipe.com/news/tesco-pension-funds-cpi-switch-paves-way-for-other-companies-experts-say_44448.php

atush

That isn't a horror story (ie Tesco).

their pensioners are living longer and it is costing them a lot more. They could have closed the FS scheme and moved them onto Money purchase but they didn't. Just asked them to work a few more years, just like PS workers. She may not like it, but it is fair and sitll a good deal.

Any years of pension already accrued will be protected and continue on the old terms.

dunstonh

doughuelas wrote: »

Hi

these are the most recent i have read. i was made aware of this as my mother is a tesco employee and is a tad cross just now!

http://www.guardian.co.uk/business/2012/mar/13/tesco-pension-changes-work-longer-cpi

http://www.ipe.com/news/tesco-pension-funds-cpi-switch-paves-way-for-other-companies-experts-say_44448.php

No horror story there. People are living longer and earning more than they did in the past. So, their living standards have gone up. So, they need to put more money away than they used to. So, paying more for a bit longer is quite normal. EVERY alternative would have to do the same. The fact that pensions are for paying pensions in retirement means it is more obvious. However, if you were using ISAs or other things you would have to do the same.

Any more "horror" stories?

Koicarp

You've probably already looked at the calculator here: http://www.nhspa.gov.uk/PDweb/pensioncalculators/AdditionalPension/index.cfm

get your quotation, then have a think about your life expectancy and do the sums ie will you get your money back?
For me it's unlikely that I would live long enough to get my money back, so my money is going into S&S ISA's too.

doughuelas

dunstonh wrote: »

No horror story there. People are living longer and earning more than they did in the past. So, their living standards have gone up. So, they need to put more money away than they used to. So, paying more for a bit longer is quite normal. EVERY alternative would have to do the same. The fact that pensions are for paying pensions in retirement means it is more obvious. However, if you were using ISAs or other things you would have to do the same.

Any more "horror" stories?

Please see below, but as has been previously stated - you can't believe everything you read

Many thanks

http://www.bbc.co.uk/news/business-14920735

http://www.telegraph.co.uk/finance/personalfinance/pensions/8814750/Value-of-private-pensions-falls-by-nearly-a-third-in-three-years.html

http://www.thisismoney.co.uk/money/pensions/article-2045144/Middle-class-pensioners-hit-50-income-crash-eurozone-crisis-bites.html

http://www.mindfulmoney.co.uk/9976/economic-impact/where-next-with-the-financial-crisis-pension-fund-default.html