NHS Pension - worthwhile?

mollycat

cavenger wrote: »

OK, I looks like the deal is pretty good from what I've read.

Pooh,
"Let's all just hope that their medical knowledge is considerably better that their financial acumen"

I'm not making and I am not responsible for medical decisions - is sarcasm the epitomy of your intelligence?

justme,
Thanks, those figures are pretty much in line with my understanding. Unfortunately, being a new member, I can't post links to the scheme or calculations.

The 2% figure comes from 1/54 multiplied by a treasury order + 1%, the actual contributions are around 26%.

"If you have to ask about it your understanding of the subject is not good enough to DIY" - I completely disagree, asking questions and investigating is one of the best ways to learn!

OK, I think the NHS scheme will be best, but my worry is what happens NHS is sold and privatised...

"What if the pension is no good..."

"What if the NHS gets privatised...."

Don't live your life around "what ifs"...it's far too short for that!

Ray_Singh-Blue

Perhaps you should have an NHS pension AND a private pension.

This could represent the best of both worlds. You would have an index-linked defined benefit pension. Along side it you save into a SIPP. If Britain somehow implodes and can no longer meet public sector pension obligations,you have a plan B. But if, as is hopefully more likely, Britain does not implode, you'll have a lot of financial flexibility in when and how you fund your retirement.

Malthusian

cavenger wrote: »

OK, I think the NHS scheme will be best, but my worry is what happens NHS is sold and privatised...

Then the worst case scenario is that the benefits you have built up until then will be protected and increased with inflation, but you won't be allowed to build up any more defined benefit pension.

All the more reason to maximise the opportunity while you can.

hyubh

brewerdave wrote: »

For info. - my wife has recently retired from the NHS with a modest pension under the old Scheme rules - we didn't want the lump sum as we preferred a bigger monthly pension but we were told that the lump sum was "compulsory"- no reverse commutation was possible.

The scheme switched to a higher accrual rather in place of a standard lump sum in 2008. (Existing members weren't just moved into the new accrual pattern.)

hyubh

cavenger wrote: »

OK, I think the NHS scheme will be best, but my worry is what happens NHS is sold and privatised...

Outsourcing and people being transferred to a contractor happens even now. Aside from the fact pensions accrued to date aren't suddenly lost (why do you think that?), newly ex-public sector workers are specially protected under 'Fair Deal' or equivalent and usually keep the right to remain an active member of their old scheme (a contractor becoming a participating employer in the NHS scheme is called a 'Direction Order' - different terminology applies to different public sector schemes, but all the main ones have the same concept).

woolly_wombat

You are extremely fortunate to still have access to a defined-benefit pension scheme.

It's something most employees can only dream of nowadays.

Hence all the sarcastic comments!

hyubh wrote: »

Outsourcing and people being transferred to a contractor happens even now. Aside from the fact pensions accrued to date aren't suddenly lost (why do you think that?), newly ex-public sector workers are specially protected under 'Fair Deal' or equivalent and usually keep the right to remain an active member of their old scheme (a contractor becoming a participating employer in the NHS scheme is called a 'Direction Order' - different terminology applies to different public sector schemes, but all the main ones have the same concept).

That in itself is a very good reason to make darned sure you don't opt out.

justme111

If terms of NHS pension worsen then you can always reassess.
Re you not having sufficient skills now to stand a chance of matching benefits of NHS pension if you ask the questions you do and you disagreeing with it - I have not said you should not have asked the questions. As you rightly say asking is good. I meant until you found the answers and done math you better stay where you are. After you done all the legwork you likely to conclude you better stay where you are anyway.. Although I must say with ever increasing contribution rates and moving retirement age NHS pension lost quite a bit of its appeal. When I done back of the packet calculation I concluded that in my case I better keep contributing to NHS pension into 2015 care scheme and take it early with actuarial reduction than quit it and invest but may have to review it later if conditions change.

jem16

hyubh wrote: »

The scheme switched to a higher accrual rather in place of a standard lump sum in 2008. (Existing members weren't just moved into the new accrual pattern.)

Although they were given the choice to move from the 1995 to 2008 sections.

BobQ

justme111 wrote: »

I think 2% may come from 1/54 (each year in the scheme accrues yearly pension of about 1/54th, or 2%).
..........
NHS pension has an uplift of 1.5% per year in addition to RPI increase. )

NHS Pension is revalued at 1.5%+RPI ? Is that correct, very generous?

Manxman_in_exile

BobQ wrote: »

NHS Pension is revalued at 1.5%+RPI ? Is that correct, very generous?

I'm not sure that is correct?