NHS 95 Pension Scheme and retiring at 60 following 2015 changes.

Toptek

Hi,

I have a question regarding my NHS Pension and the ability to start claimining it at 60 following the new (proposed) changes coming into effect. I will give as much facts and hopefully be as clear as possible!

I started in the NHS pension in 1990, aged 24 and a few months (now 47), with the hope of retiring at 60 with unreduced pension (not in the "special" category).

From my 34th birthday I began to purchase added years (approx 4.5 years) over the next 26 years to have 40 years contribution at age 60.

I am currently 47, and believe that I will have to be part of the new pension for approximately the last 10 years service from 2015.

I hear that my existing 95 scheme rights will be honoured and would like to know if that means I will be able to draw the contribution from 1990 to 2015 (plus the portion of added years) at 60, without deduction and the other 10 years of the new scheme at a reduced rate as the "normal" retirement age will have increased?

Also, should I wish to draw this money earlier than 60 (as it was possible from 50) will this still be available?

I hope that I have been clear and welcome advice please.

jem16

Toptek wrote: »

I hear that my existing 95 scheme rights will be honoured and would like to know if that means I will be able to draw the contribution from 1990 to 2015 (plus the portion of added years) at 60, without deduction and the other 10 years of the new scheme at a reduced rate as the "normal" retirement age will have increased?

I don't think all of the details have been worked out yet but yes that seems to be what will happen.

Also, should I wish to draw this money earlier than 60 (as it was possible from 50) will this still be available?

The earliest at the moment is age 55 which is likely still to be the case unless the government change the age at which you can access a pension.

However at approximately 5%pa from age 60 down to age 55, it would be a huge reduction.

Toptek

Thanks, the concern re drawing earler was rather focussing on "options" as I get older. Yes, the reductions will be steep and less paid in also..

jem16

Toptek wrote: »

Yes, the reductions will be steep and less paid in also..

Also more pension actually paid out.

You could also consider using a S&S ISA to bridge the gap between retiring and taking the pension.

atush

I will be able to draw the contribution from 1990 to 2015 (plus the portion of added years) at 60, without deduction and the other 10 years of the new scheme at a reduced rate as the "normal" retirement age will have increased?

For your planning (esp the suggestion above by Jem) can you not take the 'old 'pension at 60, but wait to take the new part at 65?

If you could do so, by using savings and even a part time role to bridge the gap, it would be better for you in the long term (baring in mind we don't know your dependent status and LE limiting illnesses) as it would increase your 'new' annual pension by 25% long term.

jem16

atush wrote: »

For your planning (esp the suggestion above by Jem) can you not take the 'old 'pension at 60, but wait to take the new part at 65?

That would be a good option. However all that I have read so far indicates that it's all or nothing. Still to be clarified though.

atush

I guess we'll wait for it to be published (and maybe you to tell us lol).

Toptek

Thanks for the responses; i hadn't thought of claiming in stages as I thought it was all or nothing.
For info, we do not and will not be having children so only the two of us. I was intending to take a larger lump sum at 60 to bridge the gap to the State pension age.
I am 4 years older than my wife who is a nurse who intends to retire at 55 (hence me possibly retiring at 59). Another reason for the larger lump sum is the Widows pension is the same, which I feel will be enough for my wife together with her pension (mortgage will be paid).