Need advice with small NHS pension return to work

keep_it_simple

Hi I wonder if someone could advise me about my pension options ? I'm completely baffeled with it !
I'm aged 55 . I joined the pension in 2003 . I worked full time for around 3 yrs, and part time since then. I intend to return to work and also take a much reduced pension. I'll never have enough NHS pension to retire and live on.

I can't get my state pension until I'm 67 and won't be able to continue doing my job until then.

What I need to know is ;
Will I have to rejoin the NHS pension ?
Not that I want to but I know I have to pay into a pension.
I don't want any further pension to affect my state pension benefit.
What will I be taxed on ?
Will I still have NI to pay ?
Will I be better off paying into a SIPP ?

It's all so confusing, any help will be gratefully received.

Thanks.

elantan

from what I understand you can sign a form which will mean you dont have to make pension contributions, I know a few that work with NHS are doing this, personal opinion I think they are silly, but it is their choice I spose. From my NHS paperwork, if I take my superannuation and continue to work they will take pension contributions and put them into a NEST ( trying to remember from the top of my head so not positive) but I dont think it receives the kinda money my superann does.

Your state pension wont be affected, its your national insurance contributions that affect your state pension nothing else.

You would be best to put your money into something so that you are not eating beans on toast every day when you retire,

you are taxed on money that you get over your tax threshold, your pension does not count towards your tax however.

If your NHS pension doesn't give you enough to retire on, how do you plan on affording retirement?

xylophone

Have you obtained a new state pension statement?

What is your starting amount?

https://www.gov.uk/check-state-pension

Do you mean that you are no longer working for the NHS but have a deferred pension which you hope to take with actuarial reduction and then return to work for the NHS?

justme111

It is not clear whether you have an option to rejoin NHS pension or whether you will be drawing it now at 55. I think most benefitial overall scenario woyld be you not drawing your NHS pension till you are 60, then drawing 1995 portion(one that you contributed to before) not reduced and 2015 portion( one that you would be contributing to from now on) reduced. It makes sense to rejoin it because even reduced due to early retirement (instead of SPA taking it at 60) NHS pension is likely to give you no worth return than SIPP or whatever else without hassle of trying to set it up and run it.

keep_it_simple

Hi thanks for your reply.

I'll have my NHS pension plus my state pension to retire on . My partner is 6 years younger than me so we'll have that wage. I'm planning on paying debts off with the lump sum and putting rest down on the mortgage to reduce the term

keep_it_simple

Hi , I still work for the NHS but I'm planning on taking Voluntry early retirement. Paying debts off with the lump sum and putting rest on mortgage.
My lump sum will be around £14,000 and the pension about £178 per month so not enough to keep me, that's why I'll have to keep working.
So I need to maximise everything I get.
Thank you by the way.

keep_it_simple

I don't know if I can rejoin the NHS pension.
I will never be able to live off my NHS pension alone as I've not paid enough if.
I have a partner who's younger than me by 6 yrs so we,ll have that wage plus my reduced NHS pension plus my state pension.

I'm just thinking that I may as well have my NHS pension now as I could do with the extra cash this will bring in without increasing my hours.
I'm going to have to work till I'm 67 and it's just not physically possible to do that for me.

Number75

I would be cautious about taking the pension now because you think you can rely partly on your partner's wage. It's that word partner that rings warning bells for me - you're not married, so you can't rely on it.

Surely your NHS pension will pay out more the longer you leave it, so better to do that?

What have you done already about reducing your debts? Are you in any kind of DMP? Rather than paying off in full with the lump sum, you might be able to negotiate a full and final payment that is less, if you're already in arrears. Maybe talk to a debt charity first?

keep_it_simple

Hi thanks for your reply.

Yes the pension would be worth more if I retire at 60 but only around £345 per month.
We owe around £6000 debts.
And £51000 mortgage.
I've been with my partner 23yrs so more or less married. Joint mortgage and child together.

mgdavid

keep_it_simple wrote: »

Hi thanks for your reply.

Yes the pension would be worth more if I retire at 60 but only around £345 per month.
We owe around £6000 debts.
And £51000 mortgage.
I've been with my partner 23yrs so more or less married. Joint mortgage and child together.

well that's very close to DOUBLE the £178 you said you'd get now so sounds like a good deal to me!

woolly_wombat

keep_it_simple wrote: »

Hi , I still work for the NHS but I'm planning on taking Voluntry early retirement. Paying debts off with the lump sum and putting rest on mortgage.
My lump sum will be around £14,000 and the pension about £178 per month so not enough to keep me, that's why I'll have to keep working.
So I need to maximise everything I get.
Thank you by the way.

I wouldn't be tempted by voluntary early retirement.

Voluntary redundancy at 55 would be a different matter, as I believe the pension you have built up so far would be paid immediately without reduction.

Are you being encouraged to take voluntary early retirement by your employer? If so then I would be very wary.

With the current state of the NHS, surely there is no guarantee of being able to find another job with them if you do go now?

As the saying goes, a bird in the hand is worth two in the bush, so you may be better just plodding on, assuming your current job isn't in danger of being down-banded.

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