Understanding my annual benefit statement

spaniel101

You can also write to NHS Pensions for an 'Estimate', particularly in relation to the specific date/s you wish to retire.

This may be chargeable.

https://www.nhsbsa.nhs.uk/sites/default/files/2018-05/Estimates-SIA%20Estimate%20Request%20Form%20%28Officer%29-20180525-%28V20%29.pdf

Almost-free

Thank you all. This really is an eye opener for me .

Bluenose1 my statement doesn’t have any sort of table. It just has the info re length of membership and the amount for pension and lump sum. I remember back in the 80’s that a mortgage adviser told he couldn't find me anything better than the nhs scheme , but I suppose leaving so long ago and having a couple of years at the end part-time -I just assumed I would get maybe £4,000 a year if I was lucky?

I’m not in any financial difficulty atm and I have a part time job I love - which I will continue as it keeps me sane as I'm also a carer- so yes if this is correct, I will be hit by tax- but I will be happy to pay it under the circumstances .

Quite a lot to think about over the weekend - inc I think getting some independant advice re the lump sum before I apply.

Almost-free

bluenose1 said:

I am a deferred member of the 1995 scheme. Just looked at my latest statement and agree the wording is confusing.
In the "current value of benefits" table that is your annual pension and lump sum entitlement. The lump sum is tax free and three times the annual pension. So you have interpreted it correctly.
A very nice surprise if you are not expecting it.
I don't suppose you know that you could have took it from age 50 (I think it is) though with actuary reduction of approx 4% per year. So if you needed the money you could take your pension now rather than wait until June.
Though that obviously depends on your current financial situation as to whether you would want to consider this.

In the next table on your statement it shows you the increased lump sum you could get if you chose to have more lump sum than annual pension.
For every £1 you give up you get £12 additional tax free lump sum. The experts on here would say only take additional if you have reduced life expectancy or have real financial need now.

All very confusing I know, but it sounds very good news for you. Just be careful of tax implications as your annual pension is taxable.

Thanks again for everyone’s help the other week. I’ve spoken to NHS pensions to discuss the figures and it seems everything is in order .

Does anyone know -  if I chose to take slightly more lump sum ( I’m thinking of just sacrificing £500) what tax implications they are? I know my original lump sum is Tax free but I’m not sure about any extra I might choose to take . 

TN1984

Almost-free said:

bluenose1 said:

I am a deferred member of the 1995 scheme. Just looked at my latest statement and agree the wording is confusing.
In the "current value of benefits" table that is your annual pension and lump sum entitlement. The lump sum is tax free and three times the annual pension. So you have interpreted it correctly.
A very nice surprise if you are not expecting it.
I don't suppose you know that you could have took it from age 50 (I think it is) though with actuary reduction of approx 4% per year. So if you needed the money you could take your pension now rather than wait until June.
Though that obviously depends on your current financial situation as to whether you would want to consider this.

In the next table on your statement it shows you the increased lump sum you could get if you chose to have more lump sum than annual pension.
For every £1 you give up you get £12 additional tax free lump sum. The experts on here would say only take additional if you have reduced life expectancy or have real financial need now.

All very confusing I know, but it sounds very good news for you. Just be careful of tax implications as your annual pension is taxable.

Thanks again for everyone’s help the other week. I’ve spoken to NHS pensions to discuss the figures and it seems everything is in order .

Does anyone know -  if I chose to take slightly more lump sum ( I’m thinking of just sacrificing £500) what tax implications they are? I know my original lump sum is Tax free but I’m not sure about any extra I might choose to take . 

The additional lump sum is still tax free. I would suggest only taking an additional sum if you need it for a specific purpose though.