Transferring into NHS Pension?

WoodyMax

Hello, sorry I don't understand too much about pensions, so here is my question.  I joined the NHS 4 months ago and am on a low salary of £5,200 a year (not working many hours).  I pay in 5.6 percent of my salary to the NHS pension scheme.  I have a pension pot from a previous employer that has approx £28K in it (value has dropped 3-4K in the  previous 4-6 weeks, understandably).  I can if I wish transfer this into the NHS pension.  However I am 59 years old and not sure if it's the best thing to do, as I don't know how much this would 'buy' me in the NHS pension scheme.  Not getting too far with questions answered at the moment because obviously people are busy with other things.  Does anyone have any idea of how this might work out for me or pointers on what I should consider.  Thanks so much

sm50

The fact that the other pension has dropped in value in the last few weeks suggests to me that it is likely to be a defined contribution pension (ie you are not sure what you will eventually get due to factors like market performance etc...). The NHS is a defined benefit pension and so you can be clear on what you will received and there are  other benefits/advantages to transferring like: death benefits, mechanism to grow (once you received the pension) and mitigate against inflation etc..... 

PennyForThem_2

You are 59 but you could work in NHS (as long as competant) until 75.  What is not to like about NHS pension?  In fact if you able, add to it.

Dox

WoodyMax said:

Hello, sorry I don't understand too much about pensions, so here is my question.  I joined the NHS 4 months ago and am on a low salary of £5,200 a year (not working many hours).  I pay in 5.6 percent of my salary to the NHS pension scheme.  I have a pension pot from a previous employer that has approx £28K in it (value has dropped 3-4K in the  previous 4-6 weeks, understandably).  I can if I wish transfer this into the NHS pension.  However I am 59 years old and not sure if it's the best thing to do, as I don't know how much this would 'buy' me in the NHS pension scheme.  Not getting too far with questions answered at the moment because obviously people are busy with other things.  Does anyone have any idea of how this might work out for me or pointers on what I should consider.  Thanks so much

I'm afraid that 'waiting' is the only option. Nobody here can tell you whether it's a good idea or not; depends what you would get if you do transfer (and of course what your transfer value would be at the point of transfer).

WoodyMax

Hi everyone,
I am back with the same question, which I realise now, I did not make clear last time.
I have approx 28K in a DC pension (stock market related) from my time at a previous employer.  I have a pension due to start in August so will be ok financially.  

My question is if I transfer all of the 28K into the NHS pension (which I still have 6 months to do so if I wish) is there any real value in doing so. Generally speaking (I understand no guarantees) will it be a better option than leaving it where is is.  I'm guessing it's safer but will it increase in value in any way in the NHS scheme.

Thank you as always for your knowledge and patience.

Woody

dunstonh

My question is if I transfer all of the 28K into the NHS pension (which I still have 6 months to do so if I wish) is there any real value in doing so.

It depends on your retirement planning.  

If you plan to retire earlier than scheme age, then you would need something to fund the gap and using a personal pension is a very good way to do that.   Whereas if you expect to retire at scheme retirement age then NHS pension may be better financially.  Although you lose the flexibility that you may prefer to benefit from in later life.   

NedS

WoodyMax said:

My question is if I transfer all of the 28K into the NHS pension (which I still have 6 months to do so if I wish) is there any real value in doing so. Generally speaking (I understand no guarantees) will it be a better option than leaving it where is is.  I'm guessing it's safer but will it increase in value in any way in the NHS scheme.

Nobody can answer if it will be better. What it will be, is guaranteed as you are buying defined benefits (DB). Whether it represents good value will depend what defined benefits they offer you in exchange for your £28K, what return you think you would likely be able to achieve if you kept the £28K, how long you think you are likely to live, and what value you put on the guarantee of that DB income, index-linked for life.

Dox

WoodyMax said:

Hi everyone,
I am back with the same question, which I realise now, I did not make clear last time.
I have approx 28K in a DC pension (stock market related) from my time at a previous employer.  I have a pension due to start in August so will be ok financially.  

My question is if I transfer all of the 28K into the NHS pension (which I still have 6 months to do so if I wish) is there any real value in doing so. Generally speaking (I understand no guarantees) will it be a better option than leaving it where is is.  I'm guessing it's safer but will it increase in value in any way in the NHS scheme.

Thank you as always for your knowledge and patience.

Woody

Have you obtained a quote from the NHS scheme to indicate what £28K would 'buy' you?

WoodyMax

No Dox I haven't I didn't know that was possible.  I will see if I can do that - thank you!

crv1963

WoodyMax said:

No Dox I haven't I didn't know that was possible.  I will see if I can do that - thank you!

Hi WoodyMax, try asking your Trust Pension Officer- you can get their number (and sometimes name) on your Trust Intranet. Another suggestion look at the NHS Business Authority Site look for pensions and look at the FAQ, or e-mail your question.

crv1963

https://www.nhsbsa.nhs.uk/sites/default/files/2020-01/Transfer%20Booklet%20%28V20%29%2001.2020_0.pdf is a link to their transfer booklet for members and Pension Officers. Hope it helps.