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value of public sector pension (NHS) vs self-employed +'practitioner only' pension help please
justcheckin
Posts: 121 Forumite
My husband is at present considering the relative value of roles in which he is a salaried consultant with a CARE Pension (NHS 2015 scheme, as these earnings will be after 01/04/22 so not part of a legacy scheme) vs self-employed earnings as an Associate dental practitioner (pension comprising own SIPP contributions plus an NHS superannuation in respect of NHS dentistry only.
He is describing the second option as far more valuable, largely because he has no figure for what the first category of NHS accrued service would cost to purchase using the other (SIPP) route.
I need to give him some figures to understand what the actual value to him of the NHS pension in his Consultant role are.
Can anyone help please?
He is describing the second option as far more valuable, largely because he has no figure for what the first category of NHS accrued service would cost to purchase using the other (SIPP) route.
I need to give him some figures to understand what the actual value to him of the NHS pension in his Consultant role are.
Can anyone help please?
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justcheckin said:Can anyone help please?Only a suggestion, but if you multiply the value of his annual NHS pension by a number between 30 and 50 you'll have a reasonable estimate.Eg, a £10k pa pension is worth between £300k and £500k.N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Kirk Hill Co-op member.Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!
2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 35 MWh generated, long-term average 2.6 Os.1 -
That is a very reasonable ballpark figure to help clarify, thank you. Should I not reduce this to allow that the other option contains a practitioner superannuation within the same NHS scheme?
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Complicated to work out - I had 20 years of officer (consultant / GP employed by acute trust - all based on final salary) and 15 years of GP (practitioner) - the practitioner pension probably built up much faster than the the officer but as I had a v high wte salary for a sessional role more money came from the officer pension - it will all be very different with the CARE system. Just beware of LTAs and AA - they can put a spanner in the works which ever one you look at1
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I need to give him some figures to understand what the actual value to him of the NHS pension in his Consultant role are.Broadly speaking, he would need to paying in around 25% of self employed earnings to match the benefits of the NHS pension.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1
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