NHS Pension-how much do you actually get?

mustachio

I have asked a few people though they seem to be blissfully unaware and yet confident it is a "good pension". How much do you get exactly per week? Well I know it depends on your earnings and length of service though could people give me an idea though not actual amounts i.e. equivalent of 25% of salary after 20 years service, etc. 

Much appreciated.

Andy_L

For every year of service you get 1.85% (or 1/54th if you prefer fractions) of that year's salary paid as a pension at retirement age. 
Very roughly, and ignoring inflation and the pensions indexation that offsets inflation and pay rises (ie very roughly indeed) 20 years service would get you 37% of your salary as a pension

oxfordowl1

Further to the answer from Andy_L which is correct regarding the 2015 scheme. Looking back, in the 2008 scheme 40 years of service gives a pension of 67% of final salary at 65 but no automatic lump sum. Looking even further backwards, in the 1995 scheme, 40 years service gives a pension of 50% of final salary at 60 plus a lump sum. 

mustachio

Andy_L said:

For every year of service you get 1.85% (or 1/54th if you prefer fractions) of that year's salary paid as a pension at retirement age. 
Very roughly, and ignoring inflation and the pensions indexation that offsets inflation and pay rises (ie very roughly indeed) 20 years service would get you 37% of your salary as a pension

Thanks much appreciated

mustachio

oxfordowl1 said:

Further to the answer from Andy_L which is correct regarding the 2015 scheme. Looking back, in the 2008 scheme 40 years of service gives a pension of 67% of final salary at 65 but no automatic lump sum. Looking even further backwards, in the 1995 scheme, 40 years service gives a pension of 50% of final salary at 60 plus a lump sum. 

Thanks for response. I am all in favour of a decent pension though 67% of salary is incredibly generous.

oxfordowl1

mustachio said

Thanks for response. I am all in favour of a decent pension though 67% of salary is incredibly generous.

I agree mustachio. Although when I was given the option to transfer from the 1995 section to the 2008 section, the official literature stated that financially they were designed to be equivalent. And that a main reason for the change was to encourage people to work longer to help prevent staffing issues.

I don't know if this is true, but it is certainly what I was told. 

Dazed_and_C0nfused

mustachio said:

oxfordowl1 said:

Further to the answer from Andy_L which is correct regarding the 2015 scheme. Looking back, in the 2008 scheme 40 years of service gives a pension of 67% of final salary at 65 but no automatic lump sum. Looking even further backwards, in the 1995 scheme, 40 years service gives a pension of 50% of final salary at 60 plus a lump sum. 

Thanks for response. I am all in favour of a decent pension though 67% of salary is incredibly generous.

I don't know how likely to happen this is nowadays but someone starting work in the NHS now at age 18 and finishing work at the current State Pension age (for them) of 68 and remaining in the same grade (and same hours) throughout their career would almost certainly get more than 100% of their finishing salary due to the revaluation element in the NHS scheme.

They would have accrued 50/54ths before revaluation.

sheslookinhot

Is it not the case that the maximum allowable pension is 2/3rds your final renumeration.

Dazed_and_C0nfused

sheslookinhot said:

Is it not the case that the maximum allowable pension is 2/3rds your final renumeration.

Not according to a union guide to the 2015 scheme,

Length of Scheme Membership

You can continue to build up pension benefits in the Scheme until age 75 with no limit to the amount of years of membership you can have. The more years of membership you have the higher the amount of pension you will earn.

Stubod

After 38 'ish years at full time my OH gets 64% of their final (net) salary as pension (this is net of tax...ie actual take home, and we only took the minimum lump sum).

When the state pension kicks in this will give basically the same pension income as when they were working.

mustachio

Well if you have 20 years of service and have paid your mortgage by the time of retirement I think you can expect to be okay. With 40 years service then you are more than okay it seems.