NHS Pension Lump sum how to invest

mick08

I'm unfortunately about to through ill health retirement from nhs, I've got a life limiting illness so the bigger lump sum works in my case. Under normal circumstances I'd take small lump sum, bigger pension.

Pat38493

Korkyb said:

Is she taking the minimum lump sum or opting to take a bigger lump sum / smaller pension?

I'm in a similar position & been advised that unless I really need the lump sum or plan to peg it in the nearish furure then its better to take a larger pension & the minimum lump sum.

She hasn't received the final numbers yet - actually she was originally planning to retire last November but after getting the numbers from NHS pensions, realised that a) they had messed up the service record and b) she could get quite a big more by working till her 56th birthday.  My impression is that they offer you the minimum and you can request to get a higher lump sum.  From what I read on some web articles, you cannot opt to have zero lump sum in the 1995 scheme.

Thrugelmir

Pat38493 said:

Korkyb said:

Is she taking the minimum lump sum or opting to take a bigger lump sum / smaller pension?

I'm in a similar position & been advised that unless I really need the lump sum or plan to peg it in the nearish furure then its better to take a larger pension & the minimum lump sum.

  From what I read on some web articles, you cannot opt to have zero lump sum in the 1995 scheme.

Read the scheme rules to obtain clarification. Available online. 

Flugelhorn

My pension is in the 1995 scheme - the minimum lump sum  is 3x the pension, you have to state on the forms  if you want more and how much more it is that you want (max 25% of LTA)  - I took some more to reduce the risk of breaching the LTA but as I hadn't a clue how much the pension was it was a bit of a shot in the dark 

Korkyb

Pat38493 said:

Korkyb said:

Is she taking the minimum lump sum or opting to take a bigger lump sum / smaller pension?

I'm in a similar position & been advised that unless I really need the lump sum or plan to peg it in the nearish furure then its better to take a larger pension & the minimum lump sum.

She hasn't received the final numbers yet - actually she was originally planning to retire last November but after getting the numbers from NHS pensions, realised that a) they had messed up the service record and b) she could get quite a big more by working till her 56th birthday.  My impression is that they offer you the minimum and you can request to get a higher lump sum.  From what I read on some web articles, you cannot opt to have zero lump sum in the 1995 scheme.

The reason I asked was that 90 - 100k is a hefty minimum NHS lump sum indicating that her pension will be £30k+.

The high £ figure may just be that she is a higher grade with max years under her belt but may be worth double checking your calculations.

The below is a quick & dirty guide to roughly what you might get from 95 scheme based on qualifying years service and salary.

As per Flugelhorn the minimum lump sum will be 3 x pension.

Nurse2047

Korkyb said:

Pat38493 said:

Korkyb said:

Is she taking the minimum lump sum or opting to take a bigger lump sum / smaller pension?

I'm in a similar position & been advised that unless I really need the lump sum or plan to peg it in the nearish furure then its better to take a larger pension & the minimum lump sum.

She hasn't received the final numbers yet - actually she was originally planning to retire last November but after getting the numbers from NHS pensions, realised that a) they had messed up the service record and b) she could get quite a big more by working till her 56th birthday.  My impression is that they offer you the minimum and you can request to get a higher lump sum.  From what I read on some web articles, you cannot opt to have zero lump sum in the 1995 scheme.

The reason I asked was that 90 - 100k is a hefty minimum NHS lump sum indicating that her pension will be £30k+.

The high £ figure may just be that she is a higher grade with max years under her belt but may be worth double checking your calculations.

The below is a quick & dirty guide to roughly what you might get from 95 scheme based on qualifying years service and salary.

As per Flugelhorn the minimum lump sum will be 3 x pension.

This is very useful, is there such chart for the 2015 scheme? 

Flugelhorn

@MFW2026 the 2015 is a career average scheme so tots up all you have earned since working for the NHS and calculates pension according to that - so not based on actual time or wte salary 

Dazed_and_C0nfused

Flugelhorn said:

@MFW2026 the 2015 is a career average scheme so tots up all you have earned since working for the NHS and calculates pension according to that - so not based on actual time or wte salary 

But using the same basic criteria, for example £30k salary for say 20 years then the pension in the 2015 scheme is much more generous.  £11,100 instead of £7,500.  And that's ignoring the annual inflation proofing (revaluation) in the 2915 scheme.

Downsides are no standard lump sum and the much later standard pension age.

Flugelhorn

it is a much more generous scheme for people with portfolio and flexible careers - you just have to wait longer to get it.  I had 1995 part practitioners and part officer - the practitioner was like the 2015 so faster accumulation and every penny counted 

Pat38493

Korkyb said:

Pat38493 said:

Korkyb said:

Is she taking the minimum lump sum or opting to take a bigger lump sum / smaller pension?

I'm in a similar position & been advised that unless I really need the lump sum or plan to peg it in the nearish furure then its better to take a larger pension & the minimum lump sum.

She hasn't received the final numbers yet - actually she was originally planning to retire last November but after getting the numbers from NHS pensions, realised that a) they had messed up the service record and b) she could get quite a big more by working till her 56th birthday.  My impression is that they offer you the minimum and you can request to get a higher lump sum.  From what I read on some web articles, you cannot opt to have zero lump sum in the 1995 scheme.

The high £ figure may just be that she is a higher grade with max years under her belt but may be worth double checking your calculations.

^^This

She will have 42 years accrued as she has MHO status so each year after 20 years of service counted double (it's a bit more complicated than that but basically you can accrue the full 40 years by 55).