Preserved Pension NHS or take early

Jupiter55

HI 

Just trying to get a grip on my NHS pension

I am in the 1995 one with NPA 60 years old and for the past 4 years the 2015 one , NPA state pension

My intention is to leave the 2015 one until its NPA

however I am looking at two options with the 1995 one, either taking it at 58 with the reduction or leaving it preserved until 60. I can use the SPPA calculator which shows me what the reduction would give me as a lump sum and yearly pension . But how do I know what I would gain by leaving it as it is until 60.

Just trying to calculate if this is the better option and using savings to fill the missing 2 years.

hope that makes sense

Thrugelmir

Putting inflation aside. 1.5% per annum compound increase in pension. 3x this as cash lump sum. 
Dependents pension likewise locks in at 50% of the pension value. 

Jupiter55

So these are the figures from the SPPA calculator for my 1995 pension
If I go at  58                                                                        if I go at 60
annual  pension £12000                                     annual pension  14000
full comm lump sum £85000                          full comm lump sum £95000

so If I leave at 58 but dont touch my 1995 pension , does this mean at 60 I get the figures above, which doesnt make sense as I wont be inputting from 58. Or is it what the pot was at 58 plus the inflation amount , which also doesnt make sense

saucer

Jupiter55 said:

So these are the figures from the SPPA calculator for my 1995 pension
If I go at  58                                                                        if I go at 60
annual  pension £12000                                     annual pension  14000
full comm lump sum £85000                          full comm lump sum £95000

so If I leave at 58 but dont touch my 1995 pension , does this mean at 60 I get the figures above, which doesnt make sense as I wont be inputting from 58. Or is it what the pot was at 58 plus the inflation amount , which also doesnt make sense

No the amounts you are quoting sound right.  The £2000 penalty for each year (the difference between £14000 and £12000) is due to the actuarial reduction for taking the pension early.  In fact you don't pay anything towards your 1995 pension, and are unlikely to have done so since we moved onto the 2015 scheme.  Your 1995 pension is payable in full at 60, anything in the 2015 scheme is payable at your state retirement age (e.g. 67).  I hope to retire at 58 (in 6 years) and will not take the pension until I am 60 for this reason.

saucer

...and to add to that, your choice at 60 is to 1. take the 1995 portion in full and leave the 2015 portion until you are at state retirement age or 2. take the 1995 bit in full and take the 2015 portion reduced for early payment. Alternatively you can take the 1995 bit at 60 and take the 2015 at any later date, with the reduction worked out depending on when this is.  

Jupiter55

HI Saucer , thats my plan leave the 2015 until the NPA for it

however I am hoping by the time that comes the issue raised in court will be resolved and I will only have the one pension

thanks

Stubod

..my other half retired from the NHS at 58 and we deferred the pension until 60. If you don't need the money and you have no health issues then (IMHO), it is a no brainer to defer the pension for 2 years. (The lump sum will also increase more than any interest you would accrue if you were to take it early).

Jupiter55

Thanks so much for your help