NHS Pension scheme 1995 scheme retire at 50? Now in 2015 scheme

watchsapart

 I am a   nearly 48 years old Mental Health Nurse. I have been in the NHS Pension scheme since 1995. My pension has automatically gone over to the 2015 scheme. I had been hoping to retire early at 50, as I understood I could with the 1995 scheme. Is it now the case that the earliest I could take my pension would be at age 55? I do not have Mental Health Officer status.   Thank you, Paul. 

Dox

The earliest you could take your pension is age 55. Do you know if you have 'Special Class Status' (which would make a difference to the amount of any reduction applied for early payment of your benefits)? If not, you need to check with your employer. 

More info on SCS at https://www.rcn.org.uk/get-help/rcn-advice/pensions-and-retirement (scroll down to 'The NHS Pension' and then down to the penultimate paragraph with a link to a SCS factsheet). 

watchsapart

I have just spoken to NHS Pensions, and they tell me that the 1995 component of my pension would be able to be taken (at reduced rate of course) at aged 50, but not the 2015 component. Even more confused! 

Notepad_Phil

watchsapart said:

I have just spoken to NHS Pensions, and they tell me that the 1995 component of my pension would be able to be taken (at reduced rate of course) at aged 50, but not the 2015 component. Even more confused! 

That would make sense i.e. you get the old benefits for the years from 1995 to 2015 and you'll now start getting the new benefits on the year racked up since then. So you'll have approx. 20 years worth of pension receiving the old benefits and 5 years on the new.

Johnnyboy11

As you're in the 1995 Section, you can retire at age 50. Two downsides: firstly you get an actuarial reduction in your pension for taking it early and secondly your pension loses indexation increase until you reach age 55. See here https://www.nhsbsa.nhs.uk/sites/default/files/2017-03/ARER factsheet (03.2017) V7.pdf

Korkyb

I'm in a similar split pension position.

Just over 30 years with the 1995 section and 5 years in the 2015 scheme & like you don`t have special status.

I'm 53 year old at present & plan to reduce my hours from full time to 50% (18.75 hrs pw) early next year.

I'm hoping to hold off taking my pension until I'm 56 or longer (depending on how I get by on my reduced wage).

I'll also have to factor in how my reduced hours affect my "pensionable" pay - (you need to keep an eye on the best 12 months salary in last 3 years with the 1995 section as that is what the pension is based on).

In my case a 50% reduction in my weekly hours will mean I will work more "unsocial" hours which attract a unsocial hours payment so it may be that by working part time my pensionable salary will actually increase after it is pro rata`d up (I still cant get my head around that).

The longer you can leave the pension before taking it the more ££ it will be (less actuarial reduction) and (as Johnnyboy11 says) if you take it at 50 it will effectively be devalued each year until you are 55 when index linked increases kick in yearly.

Happy for anyone to set me straight if I have got the wrong end of this particular pension stick (its a bit of a minefield)..