Decided life really is too short so time for pension @ 55.

Thrugelmir

Albermarle said:

Thrugelmir said:

Korkyb said:

One other factor I've considered is the fact that the NHS pension increase each year is based on the Consumer Price Index which is going to be astronomical this financial year. This (I believe) will mean that I should get a decent bump up in my pension in April 23 even though I'll only have been getting my pension part of the financial year.

Increased taxation and the general rise in prices on virtually everything will result in the increase in pension evaporating. 

Although will be in a better position than a typical private DB scheme, with a cap of 3 or 5 %.

If the scheme is RPI linked then may recover short term loss once inflation pressures fade. 

Korkyb

Dazed_and_C0nfused said:

With so much DB pension have you checked your State Pension forecast to make sure you will actually have accrued the standard £185.15 by the time you stop earning?

It's important you read the full thing, not just the headline figure.

Yep, have checked & forecast to reach max SP in another 2  or 3 years.

As I plan to keep working (very) part time that wont be a problem to achieve.

Wifie is in the same position.

Korkyb

tacpot12 said:

  
I would recommend delaying takin your NHS pension by spending most of your savings to live for a couple of years, and then restock them with your lump sum. 

Thanks, that is definitely a potential option that I did seriously consider.

I'm a scottish male who has previously been treated for cancer so I'm unlikely to make it to the telegram from whichever Monarch is on the throne.

I'm likely to be 70ish before actuarial reduction causes an overall loss. If I croak before 70 at least as I head towards the light I'll have the pleasing thought that I made the right financial decision.


If however I keeled over / kicked the bucket / snuffed it whilst "holding off" taking my pension my last thought would be how bleeding annoyed I was 

If I beat the odds & live to a ripe old age I'll have the SP to ease the pain of any actuarial reduction loss.



I guess the upshot is that I'd rather have the money now while I can enjoy it rather than having more than I can spend in later life.

At todays rates my wife & I would be on over 50k once SP kicks in even after my actuarial reduction so I think we will be comfortable enough.

Bobinyorkshire

Really interesting thread. After some helpful advice here I opened a SIPP whilst still earning and plan to use that to get me from my finish date to nearer the 60 years old I need to get my (mostly) 1995 NHS pension

otb666

I think a lot of people have done the same.  We did it this year. Life is too short although both sets of parents are in their early 90s So 40 years of self funded.  And if you are not looking for work before 67 no benefits top ups.  We replaced all our kitchen appliances and boiler before we stopped work. Well done and congratulations.

Nebulous2

I decided I’d had enough last year at 59 and stopped work. We also found ourselves with a lump of cash, which was as a result of a house move and could have funded myself until 65 when most of the actuarial reduction would go. There were several reasons why I didn’t:-

My calculations showed even deferring one year would take me to 87 before breaking even. 

As a wage slave most of my life, I didn’t like the idea of not having that monthly cash hit my bank account. 

Finding myself with a dollop of cash, most of which we are unlikely to use, and knowing it would be difficult to replace, I didn’t want to see it fritter away, even though I would have been exchanging it for increased income later.  

Finally on a different note, there is a huge psychological adjustment in stopping work. Make sure you prepare yourself for that. It isn’t all about money. 

As a former nurse, who was working in a post which required me to maintain my registration, I took a part-time job with the NHS and quickly found myself with additional responsibilities. I see it as a way of parachuting into retirement, rather than jumping off the cliff-edge. 

facade

Korkyb said:

One other factor I've considered is the fact that the NHS pension increase each year is based on the Consumer Price Index which is going to be astronomical this financial year. This (I believe) will mean that I should get a decent bump up in my pension in April 23 even though I'll only have been getting my pension part of the financial year.

If it works like the Teachers Pension, I'm afraid you won't.

Assuming that Our Masters can't do something to massage the September-Sepember CPI down, I know the TPS don't pay the full increase if you have been in receipt for less than a year, they % it.  (So if you only had 6 months pension from April, you get half the increase applied to your next full years pension) Must save them a lot with most teachers retiring in September, so they only have to pay 7/12 of the increase in their first year.

(They caught me with that one)

I'd bet 10p that the NHS pension does the same.

molerat

facade said:

Korkyb said:

One other factor I've considered is the fact that the NHS pension increase each year is based on the Consumer Price Index which is going to be astronomical this financial year. This (I believe) will mean that I should get a decent bump up in my pension in April 23 even though I'll only have been getting my pension part of the financial year.

If it works like the Teachers Pension, I'm afraid you won't.

Assuming that Our Masters can't do something to massage the September-Sepember CPI down, I know the TPS don't pay the full increase if you have been in receipt for less than a year, they % it.  (So if you only had 6 months pension from April, you get half the increase applied to your next full years pension) Must save them a lot with most teachers retiring in September, so they only have to pay 7/12 of the increase in their first year.

(They caught me with that one)

I'd bet 10p that the NHS pension does the same.

All PS pension schemes do it, there is a published table - this is the 2022 one, and it  is decided every year by parliament https://www.legislation.gov.uk/uksi/2022/333/pdfs/uksi_20220333_en.pdf

Length of Period						Percentage Increase
	16 days	to	1 month	15 days		0.26
1 month	16 days	to	2 months	15 days		0.52
2 months	16 days	to	3 months	15 days		0.78
3 months	16 days	to	4 months	15 days		1.03
4 months	16 days	to	5 months	15 days		1.29
5 months	16 days	to	6 months	15 days		1.55
6 months	16 days	to	7 months	15 days		1.81
7 months	16 days	to	8 months	15 days		2.07
8 months	16 days	to	9 months	15 days		2.33
9 months	16 days	to	10 months	15 days		2.58
10 months	16 days	to	11 months	15 days		2.84
11 months	16 days	to	12 months	15 days		3.10

theoretica

You have calculated what you will be receiving in pensions - but not mentioned what you are spending each year at present.  Will your pension income be more than you are currently spending (eg if you are putting money into savings) similar, or require you to reduce spending?  Worth knowing, and thinking about!

drummersdale

I expect there is more chance of the Government pulling a “we are all in this together” stunt in the budget and suddenly deciding that an uncapped rise to public sector pensions is terribly unfair to everyone else and cane us again as it seems to be their go to thing when looking for headline.