NHS pension additional payment

Sharifgh1

I earn £48000 and am 43 years of age. I was in the 1995 and have shifted automatically to the new 2015 pension. I would like to contribute more to my pension to get the benefit of taking me out of the 40% tax bracket. I am having difficulty in trying to work out how much I can contribute to get the benefit. Please can anyone help ?

Thank you

justme111

Have you tried looking at nhsbsa website?
Alternatively you should be able to just open a private pension and make contributions into it of the amount required to get you out of higher rate tax - check with HMRC how to proceed to get that tax paid back or someone more knowledgeable than me may reply on here.

hugheskevi

I earn £48000

Presumably you therefore pay member contributions of 12.5% (£6,000) of salary to the NHS pension scheme via normal member contributions? Making your taxable salary £42,000.

I would like to contribute more to my pension to get the benefit of taking me out of the 40% tax bracket

Unless you have other taxable income, you do not appear to be a 40% taxpayer.

claire111

To be frank I think that the benefits of purchasing Additional NHS Pension will be far greater than any saving you may make by changing tax bracket.

For most people it is excellent value but obviously do your own research. For someone your age, a lump sum payment of £9,800 would buy you £1,000pa payable from age 67 - all index linked before and after payment. If you then factor in the tax saving of 20% you would only need to receive it for 7-8 years to break even. For a higher rate tax payer its even better value.

http://www.nhspa.gov.uk/PensionCalculators/AdditionalPension/index.aspx

If you can afford it you should consider it as part of your overall planning.