Transferring NHS Pension?

CheBee

Hi there,

I work in the NHS as a nurse and wish to work part time NHS / part time agency (self employed). Am I able to transfer my NHS pension into a private one or is it best to set up a new private pension all together. I dont want to contribute to two or I am not sure if this is the best thing to do.

Thanks:j

stoozie1

I think you'd be hard pushed to find a private pension as good as the NHS pension. What are your concerns about having 2 pensions? OH pays into the NHS 2015 scheme and also has a SIPP, if that's any help. It doesn't take much faff.

Maelwys

Short version: If you don't want to pay into two pensions, keep up your NHS one if at all possible. You'll never find a private scheme that can match what it'll give you.

The big thing to note if you're trying to compare your options is that the NHS Pension is a very generous "Defined Benefit" scheme (where the employer promises to pay you £X a year until you die) whereas anything you'll be paying into privately will likely be a "Defined Contribution" scheme (where you pay money into a pot, and that pot becomes available when you retire. Whenever the money in the pot is all used up, it's all used up!)

If memory serves, in order to actually transfer money from a Defined Benefit scheme into a Defined Contribution scheme (assuming you meet the criteria to do so!), you'd need employ a Financial Advisor to sign off on a letter stating that you're doing it - and few are prepared to do this because it's such a bad financial decision on their customer's part.

kidmugsy

Anyway you are not allowed to transfer your NHS pension into a private pension, so that's that.

Silvertabby

Your NHS pension can only be transferred to another defined benefit scheme, such as the LGPS.

If you have the option to stay with the NHS pension scheme then stick with it. If you opted out of the NHS scheme in favour of a private scheme, then you would be giving up your employer's contributions.

JoeCrystal

And the NHS Pension scheme tends to be worth 25% to 33% of the salary on top so, it is easily one of the best pension schemes that can provide certain guaranteed income when you retire from it, so unlike private pension scheme where your potential income is unreliable, uncertain and subjects to the whim of the market.

CheBee

Cheers for to everyone who posted helpful advice!