Can I withdraw funds from my NHS pension.

191ian

I have an NHS Pension that I have been paying into for approx 19 years.
I am 57 years old.

Following a recent separation I am trying to buy out my former wife's interest in our property, where I continue to live with my two young children.

Whilst I would wish for my NHS Pension to remain intact, my more immediate needs are to maintain continuity, in the form of a roof over our heads. I am considering raising funds through some combination of family and commercial borrowing, and withdrawing a small amount from my NHS pension.

Am I able to withdraw from my NHS pension?
And if so, what are the potential costs to me of doing so?

Many thanks.

Dox

No, you can't withdraw a small amount from your NHS pension.

If you intend to divorce, it is possible that a Pension Sharing Order might help you to buy out your wife's share of the family home. Although this goes against your wish to keep your NHS pension intact, it might be a realistic option if you cannot raise funds any other way.

xylophone

You have young children who will live with you in the marital home following the divorce?

In these circumstances you might not have to sell until the youngest is over 18?

https://www.moneyadviceservice.org.uk/en/articles/dividing-the-family-home-and-mortgage-during-divorce-or-dissolution

Brynsam

xylophone wrote: »

You have young children who will live with you in the marital home following the divorce?

In these circumstances you might not have to sell until the youngest is over 18?

No guarantee that will happen. As your link points out, the approach varies around the country - and OP hasn't mentioned that divorce is definitely on the cards.

xylophone

No guarantee that will happen.

I didn't say that there was.

OP hasn't mentioned that divorce is definitely on the cards.

He mentions a "former" wife and says he wants to keep his pension intact which rather implies that either a divorce has happened or is anticipated?

191ian

To clarify - divorce is imminent.

I was of the belief that after the age of 55, I may be able to take a tax free lump sum.

stoozie1

You can in the 2008/2015 scheme by retiring early take your taxfree lump sum. However the act of taking it early would reduce it by so much that it would almost certainly not achieve what you want it to.

But you won't be able to keep contributing to the 2015 scheme if your earluer contributions were in the 1995 scheme.

More details about your pension needed

Spreadsheet_Addict

If you have pension in the 1995 section, it will come with a lump sum. Pension from 2015 will be CARE and you can give up up to 25% of the CARE pension for a lump sum, but in both cases you need to be drawing your pension to get it.

As far as I am aware, there's no way to draw any of your NHS pension (which is DB and has no 'pot') without drawing all of it.

Tom99

[FONT=Verdana, sans-serif]Your pension is going to have to go into the divorce pot for consideration.[/FONT]
[FONT=Verdana, sans-serif]Sharing a pension can be of particular benefit where the other party does not have a pension and will be able to use their tax allowance against the pension ie two tax allowances.[/FONT]
[FONT=Verdana, sans-serif]An NHS indexed linked pension will be vary valuable so handing over a portion of it may go a long way the buy you the house.[/FONT]

atush

as said, split the pension to keep the house

LinBWales

I believe it depends whether you are in the 1995 / 2008 or 2015 schemes. Each scheme has different rules. If you are in the 1995 scheme you can retire at 55 and take all of your lump sum, and additionally can commute some of your pension to increase your lump sum, which I believe should be tax free. I know the rules are different for the 2008 and 2015 schemes. However for all three schemes, I think most NHS employers will allow you to do something called 'Retire and return'. The policies for this are different depending on where you work, and it is always at the discretion of your NHS employer. However for more definitive and knowledgeable answers you can check the details relevant to which of the three NHS Schemes you are in on the NHS BA pensions website here https://www.nhsbsa.nhs.uk/member-hub