Taking NHS Pension Early (? around 55).

Korkyb

hawkesbaynz wrote: »

Hi,
I was Special Status on the 1995 scheme at Band 7. I left the NHS at age 52 years as I was doing a mix of NHS and agency and the agency was paying more. However I discovered I could keep the pension current by continuing part-time until I was 55 years.

I signed up to an NHS Out of Hours GP service on a Band 8a and did (strictly) one 3 hour evening shift every 12 weeks as there is a 3 month window. Three years later, and about a dozen shifts, I put my paperwork into the GP service.

I received my pension and happily it appears more than I anticipated.

Is there an option for you to get a p/t NHS role and go and do something else? Appreciate that your pensionable age is not 55.

That would be an option although as a Band 7 who works a lot of unsocial hours I'd be hard pushed to find anything else that matched the pay. (My job isn't something that I could do through an agency).


Having said that if an opportunity came along to do something completely different that interested me then I could look at doing something similar to what you did. (I'd just have to watch out for the "best wage in last 3 years" side of things).


As my NPA is 60 I'm going to take a hit if I take the pension anytime earlier but I'd only end up spending it on alcohol, drugs and wimmen anyway.

andy001

justme111 said:

Question a) - roughly you would be taking about 15k/year. In 5 years taking it early it is 15×5=75. You would be taking 4 k less/year so 75÷4=19 roughly; 19+60=79. Ie you would be losing money overall if you survived past 79. But you would pay tax on the higher amount so probably even a bit later. Plus there would be an opportunity cost , ie if you would have taken money earlier it would have a chance of making you more money.
I would not say you are bonkers at all, it makes sense and there are other considerations than making sure one's occupational scheme pays them the maximum.
Weaknesses in your plan as I see them: if in order to achieve the standard of living you want ( or even one close to it) you would need to do part time job what do you intend to do after 60 when you do not plan to work any more? Where will the money come from then? Or you planning to reduce your spending ?

Another advantage: CPI inflation starts at 55yr than 60yr
Need to consider looking at life expectancy for certain sex/race/occupational risk factors/prior health
NHS pensions are reduced by actuarial calculation so even taken early, should not be at loss overall.