Pension advice

grumpyoldgal

Hello


I have 32 years contributions to Superannuation, worked without any break in Service full time in NHS.


Changes to our pensions just the same as everybody seems to be experiencing and I am wondering now, because of the latest communication I have had, am I able to somehow stop paying my contributions and pay them into an ISA instead (or something similar)


If I do so, what happens to the sum I have accumulated? Does that just "freeze" and the same changes will occur to that when I come to draw it (but at least the changes would be to less of my hard earned money!)


I am thinking of going for advice but I wanted to know if anybody knows if this is actually possible before I go so that I have a little more knowledge about what I can do?


Many thanks

DancingBadger

If you're still in the 1995 scheme you can contribute for 40 years or to the age of 75, whichever comes first. (I can't comment on the 2008 scheme because I chose not to transfer.)

I would suggest you ring the helpline (details in this link):-

http://www.nhsbsa.nhs.uk/2735.aspx

I've found them very helpful and they'll probably be able to answer all your questions.

DancingBadger

Sorry I meant to say that stopping contributions to the NHS scheme is probably a very bad idea as it remains one of the best final salary schemes out there.

dunstonh

Changes to our pensions just the same as everybody seems to be experiencing and I am wondering now, because of the latest communication I have had, am I able to somehow stop paying my contributions and pay them into an ISA instead (or something similar)

Why would you want to do that? Nothing else will come close to the benefits the NHS scheme gives you. So, what is it that makes you think there is better elsewhere?

atush

grumpyoldgal wrote: »

Hello


I have 32 years contributions to Superannuation, worked without any break in Service full time in NHS.


Changes to our pensions just the same as everybody seems to be experiencing and I am wondering now, because of the latest communication I have had, am I able to somehow stop paying my contributions and pay them into an ISA instead (or something similar)


If I do so, what happens to the sum I have accumulated? Does that just "freeze" and the same changes will occur to that when I come to draw it (but at least the changes would be to less of my hard earned money!)


I am thinking of going for advice but I wanted to know if anybody knows if this is actually possible before I go so that I have a little more knowledge about what I can do?


Many thanks

Don't do it. Financial suicide.

Despite the changes, still a very good pension.

grumpyoldgal

DancingBadger wrote: »

If you're still in the 1995 scheme you can contribute for 40 years or to the age of 75, whichever comes first. (I can't comment on the 2008 scheme because I chose not to transfer.)

I would suggest you ring the helpline (details in this link):-

http://www.nhsbsa.nhs.uk/2735.aspx

I've found them very helpful and they'll probably be able to answer all your questions.

thank you Dancingbadger


Yes, I remained in the 1995 scheme, but have had recent letter which is very lengthy but basically states:


I will automatically move into the yet new scheme 2015 scheme, on 31/03/21. The age at which I gain my benefits without reduction in this scheme is that of my SPA, which will be 67, therefore September 2029. Therefore if I decide to retire from the NHS at age 60 then the benefits I will receive will be 5% less per year.


It states that my 1995 benefits can be drawn from age 60 but the 2015 scheme benefits will be heavily reduced if drawn at that age......however, I am being moved into 2015 scheme (there is NO choice) 18 months before I am 60!!! So therefore, at age 60 if I draw my pension I will be penalised.


Does that make sense or are my concerns not necessary?


thank you

DancingBadger

It all depends on your age. This might help:-

Q3. Will everyone be moving to the new scheme on 1 April 2015?
A. No. If you were an active member of either section of the 1995/2008 Scheme on 1 April 2012 and on that date you were within 13 years and 5 months of your existing normal pension age you are subject to Protection arrangements. ALL other members will automatically move to the new arrangement from 1 April 2015 for future service only. Click here for more information about the Protection arrangements.

Linton

grumpyoldgal wrote: »

thank you Dancingbadger


Yes, I remained in the 1995 scheme, but have had recent letter which is very lengthy but basically states:


I will automatically move into the yet new scheme 2015 scheme, on 31/03/21. The age at which I gain my benefits without reduction in this scheme is that of my SPA, which will be 67, therefore September 2029. Therefore if I decide to retire from the NHS at age 60 then the benefits I will receive will be 5% less per year.


It states that my 1995 benefits can be drawn from age 60 but the 2015 scheme benefits will be heavily reduced if drawn at that age......however, I am being moved into 2015 scheme (there is NO choice) 18 months before I am 60!!! So therefore, at age 60 if I draw my pension I will be penalised.


Does that make sense or are my concerns not necessary?


thank you

From what you say you are only in the new scheme for 18 months and it is only this money that is being affected. Suggest you work out how much money you will be paying in and how much pension you will get for it. Remember the choice isnt between what you would have got under the old scheme and what you would get under the new, rather what you get under the new and what you would get with no employer contribution. I think you will find it is still an extraordinarily good deal. DB pensions become an increasingly good deal as you get older.

grumpyoldgal

DancingBadger wrote: »

It all depends on your age. This might help:-

Q3. Will everyone be moving to the new scheme on 1 April 2015?
A. No. If you were an active member of either section of the 1995/2008 Scheme on 1 April 2012 and on that date you were within 13 years and 5 months of your existing normal pension age you are subject to Protection arrangements. ALL other members will automatically move to the new arrangement from 1 April 2015 for future service only. Click here for more information about the Protection arrangements.

Yes, I assume that protection is that I don't move into that scheme until 2021 as opposed to this April.


I need to speak to them as you advised - will do so thank you