Are the figures correct?

Jillanddy

Given the propensity of you and your fortunate friends to be considering esoteric jobs with well above average pay anywhere in the UK, it would be worth asking a professional advisor your financial questions including how to maximise your take home? 

sultan123

Jillanddy said:

Given the propensity of you and your fortunate friends to be considering esoteric jobs with well above average pay anywhere in the UK, it would be worth asking a professional advisor your financial questions including how to maximise your take home? 

True but using online calculator gives solid foundation

chrisbur

sultan123 said:

chrisbur said:

sultan123 said:

Grumpy_chap said:

sultan123 said:

https://www.nhspay.co.uk/NHS-Band-8D-Pay.php

I am looking at the calculations om this page for £90,837 but net home seems rather low for such a wage?

If you have been offered a job on that pay scale, this specific calculator is probably better than any generic calculator.  Have you taken account the pension contributions if using any alternative calculator as comparison?

Is this different to the jobs you were looking at a couple of months back?

Never knew NI contributions were more in NHS?!

To the best of my knowledge they are not, I think this is just a bit of a !!!!!!-up.

Ah ok without the error what would be take home?

Just replace the NI with £554.64 tax looks near enough and would assume pension is correct.

Grumpy_chap

sultan123 said:

Grumpy_chap said:

Well, generic salary calculator is just over £5k.
NHS calculator is £4,385 but that is after £1k pension deduction.
NHS pension is one of the best and, I think, final salary, so worth more than £1k into a private pension.

Does generic calc take pension into account?

No, not the one I used.
That's what I was trying to explain as to why the take home seems lower than you expected.  £600 less but there is £1k pension contributions.

Grumpy_chap

Thinking about this a bit more, won't the individual need to be on Band 8D 1st pay point before they can be promoted to second pay point?  That would mean they can confirm the accuracy of the online resource by comparing to their current take home.

sultan123

Grumpy_chap said:

Thinking about this a bit more, won't the individual need to be on Band 8D 1st pay point before they can be promoted to second pay point?  That would mean they can confirm the accuracy of the online resource by comparing to their current take home.

Yeah very true but they were a bit confused as to why take home for 90k looked a little low.

I think NHS pensions require you too put in fixed % amounts? Whilst private pensions you can choose what % you put in?

Grumpy_chap

It's not easy to compare NHS pension to private pension because one is DB while the latter is DC.

sultan123

Grumpy_chap said:

It's not easy to compare NHS pension to private pension because one is DB while the latter is DC.

What is DB and DC

Dazed_and_C0nfused

DB = defined benefit.  NHS is a DB scheme and it guarantees an inflation proofed pension from the schemes normal pension age, usually linked to your State Pension age.

For example on £80k you would contribute £10,800.  Which in real terms is likely to be just £6,480 reduction in net pay after taking account of tax relief.

In return you accrue a pension of £1,481.48.


DC = defined contribution.  This is where you contribute and (usually) invest in stocks or funds and build up a pension pot from which you can buy an annuity (not popular at the moment) or drawdown money as you want.  There are different options for taking money out and this tends to have more flexibility but you are subject to how well your investment choices have done.

sultan123

Dazed_and_C0nfused said:

DB = defined benefit.  NHS is a DB scheme and it guarantees an inflation proofed pension from the schemes normal pension age, usually linked to your State Pension age.

For example on £80k you would contribute £10,800.  Which in real terms is likely to be just £6,480 reduction in net pay after taking account of tax relief.

In return you accrue a pension of £1,481.48.


DC = defined contribution.  This is where you contribute and (usually) invest in stocks or funds and build up a pension pot from which you can buy an annuity (not popular at the moment) or drawdown money as you want.  There are different options for taking money out and this tends to have more flexibility but you are subject to how well your investment choices have done.

Thanks that is great to know. How does tax relief work on pensions? Does it apply to public and private sector pensions?