Retirement v Redundancy

Dunroamin

Gilman wrote: »

Hi UKnick
Thank you for your very helpful reply; I have been in continuious service, although various departments in the health service, i have contacted NHS Pensions so that they can confirm my entry date; i think i may have "opted out" for a year as this was the advice at the time ...i was talked into obtaining my own pension plan. I re-entered into the NHS as my financial advisor at the time realised the NHS was the best option!.
I was also thinking of the safe option and go for early retirement but was not sure if the lump sum quoted of £31k was taxable also the annual salary payment of £11k ...how was i going to survive???
i have also asvised i can work up to 16 hours per week....
looking at the redundancy option ....a 45% tax payment is a surprise too

Who told you this and in what context? I can't see why you can't work full time if you want to.

uknick

Gilman wrote: »

I was also thinking of the safe option and go for early retirement but was not sure if the lump sum quoted of £31k was taxable also the annual salary payment of £11k ...how was i going to survive???

i have also asvised i can work up to 16 hours per week....
looking at the redundancy option ....a 45% tax payment is a surprise too

Under the civil service pension scheme the lump sum, if it is part of your pension you are talking about, is tax free to any value. But, I'm not sure what the terms of your NHS pension are.

The £11k annual pension is liable to income tax, but no national insurance.

When you say "work up to 16 hours per week", what is this in relation to? I'd be very surprised if it has anything to do with your pension, unless the work is back at the NHS. In which case you have taken partial retirement, not full retirement.

One other thing, if you do take the pension and can't find work and intend to sign on, JSA is only payable if your income is below a certain amount, and this includes pension income.

However, you do get pension year credits. This is useful if you have worked less then the 35 years required after 2015.

atush

I thought the first 6 months of JS wasn't means tested?

uknick

atush wrote: »

I thought the first 6 months of JS wasn't means tested?

Pension income is means tested from day 1, as I found out when I tried to claim after taking early retirement.

Taken from the CAB website;

Contribution-based Jobseeker's Allowance is not affected by any savings you have. However, if you have part-time earnings or an occupational or personal pension, this may affect how much contribution-based JSA you get. For example, the amount of contribution-based JSA that you get is cut pound for pound for any occupational pension that is over £50 a week. If you earn too much, you will not get contribution-based Jobseeker's Allowance at all.

Gilman

uknick wrote: »

Under the civil service pension scheme the lump sum, if it is part of your pension you are talking about, is tax free to any value. But, I'm not sure what the terms of your NHS pension are.

The £11k annual pension is liable to income tax, but no national insurance.

When you say "work up to 16 hours per week", what is this in relation to? I'd be very surprised if it has anything to do with your pension, unless the work is back at the NHS. In which case you have taken partial retirement, not full retirement.

One other thing, if you do take the pension and can't find work and intend to sign on, JSA is only payable if your income is below a certain amount, and this includes pension income.

However, you do get pension year credits. This is useful if you have worked less then the 35 years required after 2015.

Thank you once again, i may consider retirement; they (NHS HR dept.) did quote "option A: Pension £11k lump sum £33k redundacy NIL - if this option is taken any future NHS earnings will not effect your pension" ???
If the Lump sum is tax free to any amount it may be worth my while going down this option.
I also need further clarifcaton on the 16 hour max per week work this may only apply if i return to the NHS .....but I'm not sure.