📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

NHS car leasing in the year before retirement

Options
Hi,
I am struggling to understand this!
I will be retiring from NHS Scotland next year (8 July 2022) at age 55. I pay 9.5% and my employer pays 20.8% to my 1995 final salary pension scheme. I am a Special Class member so my normal pension age is 55.
I earn £46006 per year. 
I have an NHS Lease Car and the lease ends in March 2022 but I will be allowed to extend the lease to my retirement date if I wish. 
2 questions:
(1) Should I give up my lease car a few months before I retire so that my pension is based on a higher final salary? 
(2) As the NHS  Lease Car Scheme is a salary sacrifice scheme am in the higher tax bracket of 41% in Scotland? The threshold is £43,430. My car costs me £140 per month and my employer pays the rest.


Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.1K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244.1K Work, Benefits & Business
  • 599.1K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.