Nhs

Cattawall

I am currently working within the NHS, having been in since 2009. I had a short break from NHS pensions from 11 months after reclaiming my initial payments (after being made redundant from the NHS).

I rejoined the NHS in 2011 and have been making payments ever since and having a promotion & higher band means I'm paying in more.

I am considering either paying extra into the NHS pension or setting up with a bank for an independent pension. The NHS have informed us there will be changes though I have the choice not to opt into these since I am under the 2008 scheme for nursing.

What are your thoughts / recommendations?
Thanks Cat x

atush

If you buy additional pension in the NHS or to open a personal pension could depend on if you think you will want to retire earlier than your scheme retirement age?

If you retire early using your NHS pension, it would be reduced for each year taken early- not sure of the current rate but could be 5% for each year. This is generally not wise, so having a DC pension (or other savings and investments) to live on while waiting to take the NHS one at SA and unreduced is generally a wise thing.

Cattawall

I'm not planning on retiring early however I'm under no illusion the NHS may not be here when I'm due to retire at (65) though I have been told that may go up to 69 and in all fairness I may not be in any state to nurse at that age!


I am more thinking of a safety net encase the NHS does fail and become private or if I do choose early retirement I wouldn't be able to touch the NHS pension till my retirement age.

ExMugPunter

Cattawall wrote: »

I'm not planning on retiring early however I'm under no illusion the NHS may not be here when I'm due to retire at (65) though I have been told that may go up to 69 and in all fairness I may not be in any state to nurse at that age!

My wife is a Physio in the NHS and that bit in bold is at the forefront of our thinking and planning for her pension / retirement. Although she has unbroken service, she currently works part-time and therefore accruing pension years at a slower rate.
However, rather than buy them back, at the moment we are saving extra outside of the pension in order to get that extra flexibility rather than take a the reduction if/when the time comes.

t0rt0ise

Cattawall wrote: »

The NHS have informed us there will be changes though I have the choice not to opt into these since I am under the 2008 scheme for nursing.

What are your thoughts / recommendations?
Thanks Cat x

As far as I know you won't have any choice in whether to move to the 2015 scheme or not. Unless your retirement is within 10 years when you'll carry on as before, then from 2015 everything you pay in will be under the new rules.

http://www.nhsbsa.nhs.uk/Pensions/4018.aspx

atush

And I hardly think the NHS is 'going to fail' completely. Other european countries have the equivalent and have made it less of a burden on the taxpayer by having charges for some things. This would happen first, and the pension built up would remain as is.

So either buy extra pension or use a DC scheme, the choice is yours.

jackyann

Just an opinion: although I understand concerns about the NHS, I too, can't see it failing "completely", and there will be a huge number of pensions to consider (still, I believe, the biggest employer in Europe and 3rd largest in the world).
Whilst I'm sure it makes sense to have extra savings in some form, it doesn't make sense to do so instead of the NHS pension scheme.
I do think that there are issues about front-line workers' retirement age (there was a reason we used to have "special classes"!) but even the new scheme remains good compared to others aimed at the same age group.

atush

Whilst I'm sure it makes sense to have extra savings in some form, it doesn't make sense to do so instead of the NHS pension scheme.

I agree, never opt out.

But there is a case, if opted in, to put extra pension in A DC one, if only to facilitate early retirement. Esp for workers young enough to run the risk of the scheme age being raised (again).