leaving nhs pension scheme

jannyannie

I work in the NHS and have been in their pension scheme for twelve years. I am 45 and am desperately looking to escape elsewhere. If I go into other public sector employment it's not a problem, I can amalgamate my pension at the end. However if I go elsewhere I will need a private pension. Any ideas where to start looking. I don't want some flash salesperson trying to sell something to me.:rolleyes:

dunstonh

I don't want some flash salesperson trying to sell something to me.

Dont see a sales rep then.

You havent posted enough info to go on. The "best" pension will depend on a range of things. Such as where you want to invest, how much you want to invest, how long for, what features you want, if you prefer quality investments instead of basic investments, your risk profile etc.

swebb

I left the NHS scheme after 10 years. I joined a private sector company and joined the company pension, with the employer contributing also (like the NHS). My NHS pension is frozen. I guess you could join a new employers pension (something to ask about at interview) or look elsewhere like the Prudential etc. Probably best with the employers scheme as you will benefit from their contributions.

dunstonh

or look elsewhere like the Prudential etc

Wouldn't go near the prudential pension. Even my Prudential rep admits that their pension is not very competitive.

Pensions are a tax wrapper for investments. Investment comes first in a decision. Not the provider. Your pension could potentially be the single most valuable item you end up owning. Yet people dont treat it with that sort of respect.

jamesd

jannyannie, do you have any idea how much you'd like to contribute each month? Do you have any idea how much extra income you'll want when you're retired, which is what really decides how much you should be investing each month?

If you'd like to start preparing now one option is to start using your stocks and shares ISA allowance to learn about how to pick what to invest in. The better pensions also offer a wide range of investments.

It's quite likely that your new employer will offer some sort of pension plan. It'll usually be a money purchase plan where the payments at the end are based on how well the investments perform, not on your salary.

jannyannie

jamesd wrote: »

jannyannie, do you have any idea how much you'd like to contribute each month? Do you have any idea how much extra income you'll want when you're retired, which is what really decides how much you should be investing each month?

If you'd like to start preparing now one option is to start using your stocks and shares ISA allowance to learn about how to pick what to invest in. The better pensions also offer a wide range of investments.

It's quite likely that your new employer will offer some sort of pension plan. It'll usually be a money purchase plan where the payments at the end are based on how well the investments perform, not on your salary.

At the moment I pay about £80 a month into my NHS pension. Would probably look at doing the same. I am 45 by the way, so I would be looking at paying in to a scheme for the next 15-20 years. Will look at ISA's have one already but probably need another one. Thanks.

margaretclare

Jannyannie, the NHS pension scheme is still one of the best around. You pay £80 a month into it and the Trust that you work for pays a similar amount (or that was how it used to work). You won't get that anywhere else. I completely agree with dunstonh - you should treat it with a bit more respect. £80 a month is peanuts really, but valuable because of the employer's contribution - think of that as 'free money'.

You can also pay into your ISA - equity ISA and/or cash ISA. You can use an equity ISA as a 'wrapper' for your investment income. Over 15 - 20 years it will do well, even though the FTSE has taken a bit of a nose-dive recently! Over time, these ups and downs are ironed out.

Margaret

jamesd

jannyannie, 80 per month could produce a pension of 1970 a year, 164 a month in today's money from a pension fund value of 32,800 in today's money.

To that you would add the basic and possibly additional state pensions and the NHS pension.

Assumptions: you're female, you retire at 66 years old (from the pension changes that are coming) and get 9% growth with 1% charges, no pension for a spouse desired, 3% growth each year for inflation and 5 years of guaranteed payments. No lump sum taken.