NHS pension statements

dory263

ggmf said:

As you have been advised it is not a 'pot', it is very much worth it, have you obtained a TRS?

I do have a TRS, but I guess because of my confusion about whether there was a pot or not, it just didn’t make any sense. 

So to clarify.. say for example that in 2018 my pension earned was £450 with a revaluation of 4.5%.. and then in 2019 it was £550 with a revaluation of 3.9%.. This would in theory give me approx £1,040 every year during retirement? 

dory263

Thank you all for your comments. I think I’ve finally got it!
No one in my place of work has been able to explain this to me. All I, and anyone else, have been told by senior management was “you pay X amount, we pay Y amount, and that’s the total in your pot when you retire”

JoeCrystal

dory263 said:
So to clarify.. say for example that in 2018 my pension earned was £450 with a revaluation of 4.5%.. and then in 2019 it was £550 with a revaluation of 3.9%.. This would in theory give me approx £1,040 every year during retirement? 

Better than that, it would pay you more than £1,040 in today's money every year, and as long you are an active member, you will get the revaluation rate which is currently Consumer Price Index (CPI) inflation plus 1.5% each year so it will do better than in real term.

crv1963

dory263 said:

Thank you all for your comments. I think I’ve finally got it!
No one in my place of work has been able to explain this to me. All I, and anyone else, have been told by senior management was “you pay X amount, we pay Y amount, and that’s the total in your pot when you retire”

All the years add up! Lots I work with don't understand it either, some foolishly opt out for a variety of reasons- all rubbish ones to me but they have a choice. Most Public Sector schemes are unfunded which causes some posters some angst. If you can afford it I'd look to see if you could increase your benefits, or plan for earlier retirement. However that's another ballgame!

Thrugelmir

dory263 said:

ggmf said:

As you have been advised it is not a 'pot', it is very much worth it, have you obtained a TRS?

I do have a TRS, but I guess because of my confusion about whether there was a pot or not, it just didn’t make any sense. 

There's one very large pot. Some will draw little pension, others will draw their pension for decades. Collective saving benefits everyone by reducing the overall cost of the scheme. 

nigelbb

Each full year of salary earns a pension of 1/54 of that salary. If you earn £27,000 then the pension earned is £500. If you work for the NHS for 30 years & earn £27,000 per year your pension will be 30 x £500 = £15,000 paid for the rest of your life. The actual pension will actually be higher as your salary will rise & the pension is index-linked. Forget about the contributions these are just a token amount paid on a sliding scale so deductions are less from lower salaries.

Your pension is effectively deferred salary paid in retirement. Average lifespan at retirement is at least 20 years so your pension amounts to at least another 20/54 of your salary or around 40%.