Pension need to knows Official MSE Guide Discussion

Lizann76

Hi I have a pension with the nhs , I no longer work for them. I have been told that this pension will be paid out to me when I retire.
However I am now in a new employment and have been enrolled on to the people’s pension .
I was considering transferring my nhs pension to the new pension, but what benefit would that be for me? . I can see that having my pension all in one place would be a benefit . But would there be any added interest rate because of the transfer. I have been told there would be no cost to transfer it to the new pension.
Would I be at risk of losing my nhs pension if I don’t transfer it? Any advise would be much appreciated thankyou

LHW99

I was considering transferring my nhs pension to the new pension, but what benefit would that be for me?

The NHS pension is "Defined Benefit". I'm not sure if it can be transferred out (someone here will confirm) but it would be index linked, and pay a regular amount for the rest of your life (and 50% to your spouse if you have one).
These sort of pensions are expensive to transfer, even if you can, and you may find you would be best not to do so.

HappyHarry

To confirm, if you were a member of the NHS scheme for two years or more, you can't transfer any of it. It will stiall be available to you at normal retirement date, and won't be lost.

angel_nicx

Hi all. I've read the article with interest but am hoping for some advice.

My partner (36) has no pension. Due to him working outside of the UK he is not a UK tax payer. Is a pension beneficial in this situation, or is he better off ploughing the money into his mortgage?

ANY advice would be very gratefully received.

maskillc

It seems some time since there was active discussion but now that I've entered the world of retirement I have a burning question which I never previously considered.
I have 3 pensions (fairly small ones) which all come into my current account on different dates and can't be changed (?) However, my direct debits go out from my current account at the end of the month (when I was previously paid) which means I no longer have a synchronised plan. How do others work this ? It will be even more confusing next year when I receive my state pension at 66 years of age as that is paid 4-weekly, therefore many different dates of entering my current account.

Silvertabby

maskillc wrote: »

It seems some time since there was active discussion but now that I've entered the world of retirement I have a burning question which I never previously considered.
I have 3 pensions (fairly small ones) which all come into my current account on different dates and can't be changed (?) However, my direct debits go out from my current account at the end of the month (when I was previously paid) which means I no longer have a synchronised plan. How do others work this ? It will be even more confusing next year when I receive my state pension at 66 years of age as that is paid 4-weekly, therefore many different dates of entering my current account.

I accept this may be easier said than done, but the way we do it is to have a 'buffer' amount so we always have enough in our current account to meet all our direct debits regardless of when our pensions go in (different dates for our occupational pensions and, as you say, 4 weekly for Mr S's State pension).

jamesd

Direct debits can often be changed.

You could instead move the direct debits to another account and use a standing order to pay into it once a month. You could also have another account for spending money if you like.

Personally, I just ensure that my balance is enough for several months at all times so I can ignore it for months without any trouble.

Notepad_Phil

jamesd wrote: »

Personally, I just ensure that my balance is enough for several months at all times so I can ignore it for months without any trouble.

+1 for this, though it might prove harder if you're low on savings.

The Santander 123 current account has been great for us as we've been able to hold multiple months of our probable monthly budget at a not too bad interest rate (as the £5 monthly fee is covered by cashback for us) - though the coming rate cut might mean making a rearrangement to lower the balance there.

Blackwhite69

I am 66 years old in may and in poor health and have decided to take my personal pension from Phoenix Life in a lump sum, i'm aware of getting the first 25% tax free but at what rate will the other 75% be taxed at.

eskbanker

Blackwhite69 said:

I am 66 years old in may and in poor health and have decided to take my personal pension from Phoenix Life in a lump sum, i'm aware of getting the first 25% tax free but at what rate will the other 75% be taxed at.

If you're literally taking it all in one go (which is unlikely to be sensible and may not even be possible) then it would be taxed according to the usual income tax thresholds, i.e. 0% on the first £12,500 of taxable income, then 20% on the next chunk up to £50,000 and 40% beyond that, maybe even 45% if it reaches six figures, all of these rates and thresholds being slightly different in Scotland....