NHS pension vs. SIPP

System

Jaberwock-

.Yeah, this seems to me to be one big benefit of opening a SIPP. You can take NHS pension early but one of the stipulations is that you have to have ceased all forms of NHS employment. Having a SIPP would be a bonus if for example I wanted to wind down my employment and supplement my income rather than retire altogether.

Exactly, you dont want arbitary penalties, with a sipp, as with any other DC pension, you wont have that. Still though winding down may affect the nhs one but perhaps if youre financially stable enough then "retire" and go to zero hours contract

The other advantage of a sipp is that you can invest far more aggressively than any normal DC stakeholder pension would - without gilts and bonds, etc... A lot of equity classes have doubled in 5 years, imagine a 100% allocation in that for a few decades before introducing some bonds near drawdown. Just be careful to buy and hold rather than attempt to day trade, and dont sell in a crash, wait for the upswing

dunstonh

jabberwock95 wrote: »

Like what? Assuming the answer is something to do with finances rather than politics.

Like a lot of what you have been saying really. Assuming you are actually asking with interest and not being obtuse.

jabberwock95

dunstonh wrote: »

Like a lot of what you have been saying really. Assuming you are actually asking with interest and not being obtuse.

So far all I've said is that NHS pensions are less generous than they used to be and got my head bitten off by people mistakenly assuming I'm saying DC schemes are better.

I'm done anyway, several times I've asked questions in good faith and just been insulted in return. Good job on the welcoming atmosphere guys.

:money:

System

Basic membership i daresay is better than additional contributions.
You might not get employer contributions to a sipp, and I recommend one sensible pension to give you the confidence to have a second, more adventurous one

Kynthia

As had been said, government changes aren't a reason not to buy added pension as the government has changed public sector pensions a whole lot less than the private sector, had to respond to changes such as increasing life expectancy, and has never made a retrospective change.

However I can only share my thinking on added pension as it's a decision based on an individual's circumstances and plans. I feel state pension age is too long to wait for all or the majority of my pension (employer and state), particularly as it may be pushed back even further. If I already had other pensions that paid earlier or were flexible pots I could draw down then I would consider it. If I knew I wasn't going to spend long in the DB scheme (as it's a good scheme, even the added pensions element) then I would consider it, and if my family had a good track record of a very long life then I would consider it.

So tge questions I ask myself are: is it likely to be a good return on investment, do I need it for longevity risk and do I have another need for the the money?

Unfortunately I think there's a good chance I'll go any time between 55 and 80, although there's no way of knowing for sure but my existing DB and state pension means I'll have enough should I live longer. So i dont think I'll get a good return and i already have longevity risk covered. I'd like to ease off working full time in a high pressured job or even consider retirement between 60 and 68 and I don't have enough for the latter yet. Therefore I feel the money would best be used in the years before state pension age. Whether I put it in a SIPP, my next employers DC scheme, or keep it as savings in a S&S ISA again depends on whether I may need access before 55 (or 10 years before SPA if that change occurs), the terms/costs of a future employer's scheme was and whether my income would give greater tax benefits to putting it in a pension.

System

It depends what you'd expect to get in return for your additional contributions and whether you think you can beat it. Bear tax in mind. I wouldn't be surprised if an aggressive allocation in s&s isa or sipp or lifetime isa could beat the additional on the DB one. There may be aggressive non-sipp DC pensions possibly

The basic DB one is probably more generous than the additional top ups, so I'd think have the basic but after that shop around

Thrugelmir

jabberwock95 wrote: »

I'm done anyway, several times I've asked questions in good faith and just been insulted in return. Good job on the welcoming atmosphere guys.

:money:

People respond to what's written. Normally there's a source of the assumption made. Everybody has their own style of responding to posts. Takes time to get used to debating on open grown up forums. Grow a thick skin, wear a helmet and you'll be fine. Those that intentionally troll. Add to your ignore list. Then you never have to read their posts.

coyrls

jabberwock95 wrote: »

So far all I've said is that NHS pensions are less generous than they used to be and got my head bitten off by people mistakenly assuming I'm saying DC schemes are better.

I'm done anyway, several times I've asked questions in good faith and just been insulted in return. Good job on the welcoming atmosphere guys.

:money:

I think what happened is that you posted on an existing thread where the OP was suggesting that DC schemes were better. Although you were making a different point and asking a different question, the context suggested that you were continuing that debate.