NHS pension early but working

Sawman

New here so be gentle.
I have worked in nhs for more than 30 years. Currently have 2 part time substantive jobs in neighboring trusts that puts me over full time hours and with travel is a 60 hour week minimum. I’d like to drop one of my jobs (2 days) but with 1 at university and another doing gcse I dont think I can afford to.

I am 52 and so I think I could take my 1995 section pension (giving 20% away) and return to my 3 day a week job, the lump some could pay off a big chunk of mortgage and the fact that i am no longer contributing to pension would balance my drop in salary (i dont think I am allowed to keep paying 2015 aection pension).
I could have mondays and fridays to myself, making my 3 remaining long days more manageable.
Does anyone know why this wouldnt work? And also would it be prudent to buy into a private pension for what I might expect would be another 10 years part time work?
Thanks in advance

shinytop

My OH did just that (minus the bit about the mortgage) and it worked very well for us. You can't 'earn' more than you did before (earnings plus pension no more than previous earnings). You might want to consider continuing to contribute to a pension to get the tax break but that's up to you. Good luck!

crv1963

Sawman wrote: »

New here so be gentle.
I have worked in nhs for more than 30 years. Currently have 2 part time substantive jobs in neighboring trusts that puts me over full time hours and with travel is a 60 hour week minimum. I’d like to drop one of my jobs (2 days) but with 1 at university and another doing gcse I dont think I can afford to.

I am 52 and so I think I could take my 1995 section pension (giving 20% away) and return to my 3 day a week job, the lump some could pay off a big chunk of mortgage and the fact that i am no longer contributing to pension would balance my drop in salary (i dont think I am allowed to keep paying 2015 aection pension).
I could have mondays and fridays to myself, making my 3 remaining long days more manageable.
Does anyone know why this wouldnt work? And also would it be prudent to buy into a private pension for what I might expect would be another 10 years part time work?
Thanks in advance

Do each Trust know about the other? Are you employed permanent in one Trust but bank in the other? Are you paying Superannuation in both jobs? I think that you are only allowed to pay a whole time equivalent into the scheme.

I believe as a rule you cannot have pension+earnings that totals more than your salary on retiring from the NHS. So for arguments sake you earn 10k in trust A and 20k in trust B and each is unaware of the other then when you retire from both and take say 15k pension you could not carry on with Trust A as you already have an income exceeding what they saw as your final salary, you could work for Trust B but only earn 5k as 15+5= your final salary with them.

It may be worth speaking with one of the Trusts Pension Officers? You are correct you cannot join the 2015 scheme, so a personal pension of some sort would be needed.

In the long term pension income wise you'd be better off reducing hours now and staying on to take the pension unreduced, and if you are a MHO work to 58 and get 45/80ths.

Sawman

Thanks both. I think my first port of call on this is the trust pension advisor, to check my assumptions about the maths. I dont think i can take the 2015 benefits at this point so I guess they with just sit there to grab later.
Crv- my contracts are both permanent substantive ones and both trusts are aware. As you say i can only superannuate up to full hours, this means i have 2 payslips for one job, the part that takes me over full time doesnt have a pension payment.
I think theres a chance i can stick the pension”salary” into a savings plan or recyle into a new pension. Plus i could explore or develop private practice on my days off. My beer mat maths suggests it might work, just hope the pension adviser does not blow it out of the water with something I have not considered

crv1963

That's good that you have a WTE total for your pension. Are you transferred over to the 2015 scheme? How many years total in the 1995 scheme? Do you have MHO status or did you have "special class" status? If not then the retirement age for the 1995 scheme would be 60, so accessible with reduction at 55.

mollycat

crv1963 wrote: »

That's good that you have a WTE total for your pension. Are you transferred over to the 2015 scheme? How many years total in the 1995 scheme? Do you have MHO status or did you have "special class" status? If not then the retirement age for the 1995 scheme would be 60, so accessible with reduction at 55.

This is the only potential fly in the ointment as far as I can see; you don't say if you are a MHO in your OP, but if you are not I think you're plan is a non-starter, (at age 52).

Sawman

Ah, I was under the impression that having been in the 1995 section between 2000 and 2006 my minimum age was 50 (with approriate reduction) i am not an MHO, might have to grin and bear it for another couple of years��

Sawman

As per this info1995 Section

If you joined the 1995 section before 6 April 2006 you can choose to take actuarially reduced early retirement from age 50 and receive reduced benefits. Your pension and retirement lump sum are reduced because they are being paid earlier than expected. Your dependants will still get any benefits they are entitled to in full.
If you joined the 1995 section on or after 6 April 2006 your minimum pension age will change to 55 on 6 April 2010. If you returned to the Scheme after 6 April 2006 this may also apply to you.

mollycat

Sawman wrote: »

Ah, I was under the impression that having been in the 1995 section between 2000 and 2006 my minimum age was 50 (with approriate reduction) i am not an MHO, might have to grin and bear it for another couple of years��

Better check in case I am wrong!!

In any case, if it was possible I,m sure the calculation would be made from NRA of 60; so x8 years at circa 4% reduction makes it more like 30%+ loss.

Again you need to check this but I am pretty sure that simply being in the 1995 section does not in itself give you special class status.

Good luck.

Sawman

Yeah calculation from 60. Age 53= 80% lump sum and 73% pension according to the fact sheet

mollycat

Sawman wrote: »

Yeah calculation from 60. Age 53= 80% lump sum and 73% pension according to the fact sheet

Ah, okay. I thought you were going at 52 therefore >30%

I know that you aren't looking for financial advice here, so please take the next bit in the spirit was intended.

Unless there are personal issues that would lead you to consider disadvantaging yourself financially, I would carry on working as outlined by crv1963 in one of his posts above.

I know a few people who have left early, reducing their ability to increase their pension benefits in order to access their lump sum; every single one of their "future selves" have regretted it. Some are having to bank way beyond the date they actually would have retired

At our age a consistent, guaranteed, liveable income trumps everything.

Like I say, I appreciate this point may be unwelcome, or your circumstances dictate you make different choices.

Best of luck whatever you choose to do.

ps. Remember, that will be 73% of what you have accrued, rather than what you would have accrued.