55 in 2 weeks - need to know my best option

QrizB

Dale72 said:

That's interesting. Why is that rule in place if anyone knows. I've been told a few times that pension administrators are only too happy to get pension liabilities off their books.

UK Government DB pension schemes aren't like normal ones. They aren't funded, they're paid out of general taxation as the pension fall due. If people were allowed to transfer out to a non-Gov scheme the Treasury would have to find the money today.

TARDIS

QrizB said:

Dale72 said:

That's interesting. Why is that rule in place if anyone knows. I've been told a few times that pension administrators are only too happy to get pension liabilities off their books.

UK Government DB pension schemes aren't like normal ones. They aren't funded, they're paid out of general taxation as the pension fall due. If people were allowed to transfer out to a non-Gov scheme the Treasury would have to find the money today.

The NHS pension scheme is funded by contributions from working members not out of general taxation. Every few years it is reviewed and contribution rates adjusted accordingly so it isn’t over/under budget. There is therefore no liability needing to be offloaded unlike some private DB schemes.

Notepad_Phil

TARDIS said:

QrizB said:

Dale72 said:

That's interesting. Why is that rule in place if anyone knows. I've been told a few times that pension administrators are only too happy to get pension liabilities off their books.

UK Government DB pension schemes aren't like normal ones. They aren't funded, they're paid out of general taxation as the pension fall due. If people were allowed to transfer out to a non-Gov scheme the Treasury would have to find the money today.

The NHS pension scheme is funded by contributions from working members not out of general taxation. Every few years it is reviewed and contribution rates adjusted accordingly so it isn’t over/under budget. There is therefore no liability needing to be offloaded unlike some private DB schemes.

Not quite right, the day to day costs are funded partially by contributions from working members, the majority of costs are paid by the employer with the government acting as a guarantor. Now if you think the employer i.e. the NHS does not get the majority of its money from general taxation then I'd like to know where they get it from.

xylophone

See

https://www.thepensionsregulator.gov.uk/en/public-service-pension-schemes/understanding-your-role/investments-and-funding-of-local-government-schemes

Most public service pension schemes are ‘unfunded’, ie they operate on a ‘pay as you go’ basis. Contributions from those paying into the scheme today pay the benefits of those currently retired. The exceptions to this are the local government pension schemes.

tritons0

so i found this info about my nhs pension lol - not gonna take me to the maldives haha -
standard benefits - pension - lump sum £15.83,  lump some - nil, adult dependant person  £5.34, hypothetical annuity cost £595.21
benefits if taking maximum sum - pension £10.17,  lump sum £67.84, adult dependant pension £5.34 - and i cant take this till normal pension age - 67?
my scottish widows one is pension value £7363 at march 2021 - looks like flexi access drawdown not an option though as have to have plan value of 10,000 minimum
prudential fund value £16,559
paying into these pots would be very difficult due to financial situation - but perhaps could put may £40 each month - but is that worth it?
i really dont undertand the jargon  - most grateful for all your help though 
who thought turning 55 could be so stressful haha

tritons0

oh apparently that nhs stuff was the 2015 section - heres the 2008 bit too?
pension £124.78, lump sum nil, adult denendable pension £46.79,  hypothetical annuity cost £4,691.73
benefits if taking lump sum - pension £80.22, lump sum £534.77,  adult dependant person $46.79 

TARDIS

Notepad_Phil said:

TARDIS said:

QrizB said:

Dale72 said:

That's interesting. Why is that rule in place if anyone knows. I've been told a few times that pension administrators are only too happy to get pension liabilities off their books.

UK Government DB pension schemes aren't like normal ones. They aren't funded, they're paid out of general taxation as the pension fall due. If people were allowed to transfer out to a non-Gov scheme the Treasury would have to find the money today.

The NHS pension scheme is funded by contributions from working members not out of general taxation. Every few years it is reviewed and contribution rates adjusted accordingly so it isn’t over/under budget. There is therefore no liability needing to be offloaded unlike some private DB schemes.

Not quite right, the day to day costs are funded partially by contributions from working members, the majority of costs are paid by the employer with the government acting as a guarantor. Now if you think the employer i.e. the NHS does not get the majority of its money from general taxation then I'd like to know where they get it from.

Fair point. I guess I see the employers contribution as part of the whole pay package rather than a separate entity.
Given NHS wages mostly come indirectly from general taxation does this mean “I pay your wages” will morph into “I pay your pension” when I finally make my escape? 

xylophone

“I pay your wages” will morph into “I pay your pension” when I finally make my escape?  

When your pension comes into payment, it will be paid monthly from the scheme.

xylophone

so i found this info about my nhs pension lol 

Google NHS Pensions Trivial Commutation

 Where the total value of a trivially commuted pension excluding any pension commencement lump sum does not exceed £10,000, the member may elect at awarding stage to trivially commute their pension. This is regardless of whether the capital value of all 

their pension benefits, including those outside the NHS Pension Scheme, is more than the commutation limit of £30,000. 

I am wondering whether this may apply in your case.

my scottish widows one is pension value £7363 at march 2021 - looks like flexi access drawdown not an option though as have to have plan value of 10,000 minimum
prudential fund value £16,559
paying into these pots would be very difficult due to financial situation - but perhaps could put may £40 each month - but is that worth it?

It might be possible to transfer the pensions to eg Hargreaves Lansdown SIPP and then continue to contribute.

If transferred to HL, it could be possible to take the PCLS only and then continue to make a modest monthly contribution - you would benefit from tax relief on your contribution.

Have you checked your state pension forecast?