NHS Additional Pension purchase

spaniel101

Hi


Is anyone familiar with the NHS Pension able to answer the following question for me please?


I am a 46 y/o single parent to a 5 year old.



I have 15 years worth of Deferred 1995 NHS pension (1995-2011).
I have recently rejoined - 2015 NHS Pension.
I have purchased ERRBO with the 2015 scheme.
I have also purchased £6000 Additional with the 2015 scheme.


My question is, can I purchase further Additional Pension, or is the limit of £6500 Total (as oppossed to maximum purchase £6500... Per Annum) ?


Thank you

stoozie1

It's a total maximum purchase of the £6500. The annual part refers to receiving it, not buying it.

spaniel101

Thank you kindly stoozie1. If I wished to purchase any more, is my only options then either MPAVC or SIPP, (I haven't yet read any further but I am assuming there would be no difference in either of these...specifically employee benefit wise or would I be stupid not to do MPAVC over SIPP??) ?


Also, on a slightly seperate note, I thought Deferred 1995 scheme increased by RPI each year but this weekends total rewards statement for 2017/2018 figures are only 1% more than last years ?




Thank you

stoozie1

Now this I am slightly less sure on, but the very knowledgeable peeps will hopefully verify that MPAVCs will have more value than the SIPP because with the SIPP you just get the tax relief, but with AVCs you also gain effective relief on the NI you would otherwise have paid.

I agree that your pension should increase by CPI plus 1.5% but I havent had a look at this year's TRS to see what's happened. But wouldn't the uplift to 17/18 happen in April 2019?

stoozie1

Is this link helpful?

https://www.bma.org.uk/advice/employment/pensions/inflationary-increases-to-pensions-faqs

crv1963

The other advantage I understand of MPAVC over a SIPP is once in payment the NHS Pension scheme guarantees their payment and increases, not the market rises or falls.

atush

Will you be retiring before scheme age?

If so, consider a DC pension for your extra cash (with S&Sisas). paying for additional pension then taking the pension early/reduced may not be the wisest course.

louloubelle79

I have also purchased the £6500 additional pension and pay into the AVC with Pru with the NHS. Looking at ERRBOs currently and if worthwhile for me.
Additional I would use the AVC with Aviva or Pru and if required the stakeholder through NHs pensions-see link

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

louloubelle79

I can take my AVC with Pru at age 55 forgot to add in last post.

louloubelle79

Sorry MPAVC are with standard life not Aviva or / Prudential

louloubelle79

http://www.standardlifepensions.com/nhs