Claiming NHS pension at age 56 years and 7 months

cosmo123

I have decided to claim my 1995 NHS scheme pension early (at age 56 and 7 months) rather than 60.  My Total reward statement indicates I am only in the 1995 scheme which by the time I leave will total 24 years continuous service.  I understand from reading NHS pension literature the reductions for leaving early are 18% and 12% (lump sum) at 56 but the figure will fluctuate according  to exact age.  Am I correct in thinking this?  The other query is whether the lump sum within the 1995 NHS pension scheme is taxable.
Any advice/guidance appreciated.

jem16

cosmo123 said:

I understand from reading NHS pension literature the reductions for leaving early are 18% and 12% (lump sum) at 56 but the figure will fluctuate according  to exact age.  Am I correct in thinking this? 

I haven't checked your figures but the understanding is correct.

The other query is whether the lump sum within the 1995 NHS pension scheme is taxable.
Any advice/guidance appreciated.

The lump sum is tax free.

xylophone

The fact sheet (type 1995 nhs pension scheme actuarial reduction into Google) says quite clearly

1. If the member retires between the ages shown the amount of reduction will vary. Survivor benefits are not actuarially reduced. The "ages shown" are between 50 and 59. At more than 56 but less than 57, presumably the pension reduction is not more than 18% and the lump sum reduction not more  12%. 

2. If you type 1995 NHS pension scheme into Google, you will come up with the full guide for  1995/2008 (revised 2019).  The lump sum is shown as 3 x pension. Option to exchange part of pension for more cash at retirement up to a limit 

3. https://chasedeveremedical.co.uk/the-nhs-pension-scheme-tax-free-lump-sum-explained/. might be of help.

Almost-free

Have you downloaded your total reward statement ? I only recently remembered I have an nhs pension and am due to start receiving it in June aged 60. There was quite an easy calculator on there to work out taking it early .

Almost-free

Amended as I didn't  read OP properly 😬

cosmo123

Yes thanks Almost-free for advice - I think I was guessing being 56 and a half would bring the reduced amount down to a percentage between 57 and 56

crv1963

If I have read your original post correctly then you are still working in the NHS? If so contact your NHS Trust Pension Officer- you can ask for a Pension Forecast, which they may or may not be able to work out quite quickly for you. You could also ask about any pre-retirement courses your Trust is running- I found my Trust one very helpful, it looked at the wider choices in life as well as the financial ones and was not in the least dry or boring.

Good luck.

spaniel101

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

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