Pension advise

Jo31

I wondered what your opinion might be of leaving an NHS pension scheme after 31 years of contributions. I am aware I can transfer it, or leave it to draw on when I retire, but I wondered if it would not be wise to move from an NHS job after such a long time in th scheme. I would of course have to start a new pension in a new job.

Kind regards
Joanne

Dazed_and_confused

Where could you transfer it to?

I doubt you can "draw on" it. You almost certainly don't have a pension fund/pot.

But a guaranteed amount due to be paid to you.

The NHS pension is very good but there are definitely better out there. But probably not many.

You have a greater chance of ending up with a worse pension in any new job.

But 31 years in the NHS scheme and presumably a decent if not full new State Pension would be a good position to start from if you wanted to change career path.

Dox

Your pension is only one factor in this equation. The more important issue is surely whether you are keen to pursue other career opportunities outside the NHS?

hyubh

Jo31 wrote: »

I wondered what your opinion might be of leaving an NHS pension scheme after 31 years of contributions.

Leaving because of opting out would obviously be a bad idea, but leaving because you fancied a new challenge, and got an interesting job with suitable renumeration in the private sector? Likely fine.

I am aware I can transfer it

Practically, you could only transfer if you got another public sector job, and so were able to transfer it to another public sector scheme.

or leave it to draw on when I retire

Yes, or whenever your normal pension age in the NHS scheme is.

I would of course have to start a new pension in a new job.

Chances are it will be a lot worse if the new job wasn't in the public sector, however that just means you should take account of the pension when considering salaries. Very roughly, you could consider your 'equivalent' employer contribution rate to be around 20% with the NHS (pension value around 30% of salary, less your employee contribution rate).

Don't be surprised if private sector jobs of interest offer 5% or less, however pension rights aren't everything, and given the good NHS pension you've already earned, an interesting job with a higher headline salary but nominal pension might be opportune.

atush

You cnt reslly transfer it, unless as above you join another public sector pension.

Leave it, open a new pension at any new workplace

xylophone

You will not be permitted to transfer out except to another DB Scheme.

https://www.unbiased.co.uk/life/pensions-retirement/public-sector-pensions/

zagubov

You need to be careful if you do switch; for example if you switched to the USS you may find it's not as good as the NHS.