Pension advise for NHS worker, SIPP or ERRBO

victordent

Hi,
I am an NHS dentist, moved from Sweden and started work in 2008, and started contributing to the NHS pension system in 2009 ( so am in the 2008 scheme). I will be 46 this year and hope to retire at 60. Wife works part time. Just a few concerns/ questions:
1. Is it worth contributing more through the ERRBO scheme?
2. Is it better to invest in a SIPP as my NHS pension wont be great as I started a bit late?
3. or a few funds in the stocks and share ISA should be good enough.
We dentists are good are fixing teeth but have poor financial skills.
I have some money in a cash ISA and most of my mortgage is paid off. I just can't see NHS dentistry continuing for long due to lack of investing from the government so am concerned.
What I want to achieve is:
atleast maintain a reasonable standard of living at the age of 60. I earn around 65,000/ year gross and save a bit and start winding down slowly from the age of 55.I have a medium appetite for risk and have some money in a VLS 60 fund.
Some advise would be appreciated
Victor

stoozie1

Is all of your 65k pensionable, or do you do some private dentistry also?

My OH is an nhs dentist (salaried and self employed) and recently decided to start a SIPP to transition between the 1995 and 2015 retirement dates.

Can I just check, do you mean you have some service in the 08 scheme and now have 2 and a bit years in the 2015 scheme?

have you looked at whether you might hit your lifetime allowance?

victordent

All of it is pensionable. Yes you are correct..some in the 2008 and then 2015. I am quite far from the LTA as I started late.
As far as sipp goes..did she need an IFA...how do decide on funds or shares?
Victor.

justme111

You decide how much money you will need after 60 , you look up your nhsbsa statement then you decide see how much one number is away from another and calculate how much you have to contribute now.
In response to your questions - I would say No Yes Yes
ERRBO looks like fuff for just 3 years
Are you in a higher rate tax band ? If so it is more benefitial to invest through SIPP , if not I believe it is still more benefitial with SIPP but not so much and depending on the exact numbers
I suppose a few funds in s&s could suffice. Depends how much are in those funds. IFA - may be yes. Someone earning 65 k wanting reasonable standard of living in retirement sounds like an awfully big pension pot needed so may be IFA would be justified.

victordent

Frankly,
I have a frugal lifestyle..no flashy cars. just want a basic standard of living..
Victor

justme111

So what is your Number ?

victordent

I think I ll get on with 2K a month as I dont think i ll have too many debts...no indemnity fees to pay etc..
Victor

justme111

How much would be your NHS pension if you continued contributing till 60?

Kynthia

So if you work until 60, what annual income are you likely to receive at state pension age in today's terms and is it enough? This is made up from your state pension and NHS pension.

If it is enough then you are just looking to save enough t fund the gap between 60 and state pension age. If it isn't then you will need more than that and I would consider purchasing additional nhs pension now as it gets more expensive the older you are.

To fund the gap I would find an Ifa to set up a private pension. Sipps are for those that know how to invest or only want t invest a little or periodically. You want a large amount of money saved, have no investment expertise and can save regularly, so a private pension sounds like the best idea and can often be cheaper than a SIPP too. Shop around ifas to find someone you trust and charges a reasonable price.

xylophone

State Pension Forecast

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

Any Swedish state pension?

Have you read

https://www.nhsbsa.nhs.uk/member-hub/increasing-your-pension

victordent

Justme 111: My forecast for the amount I have contributed till march 2015 is around 9,000/ year. ( I can get that when I retire at 65}.
I should be due my state pension at 67 in the UK.
Not much in Sweden as I had been travelling a bit and got serious only in the past 10 years..
victor