Consolidating NEST & NHS workplace pensions?

JustAnotherSaver

Wife's previous workplace pension although working sort of for the NHS was with NEST (pot = approx. £5k). She is now actually employed by the NHS & is paying in to an NHS pension.

She can't actually access her pension details online or anything & any communication with the powers that be, well I think they're well practiced in taking things at a leisurely pace, if leisurely pace means not bothering at all.

As a result, we can't really see any info about her pension. Charges, how much is in there (wont be much at the mo), just nothing at all. Only what her monthly payslip says is getting paid in.

Would probably have to wait until she can access it, whenever that day may be, but would you transfer the NEST pension over to the NHS pension for 1 pot rather than 2?

And for anyone with an NHS pension, how do you actually access it? By access it I'm obviously not talking about getting the money, I'm talking about viewing its progress etc. - logging in to some kind of online portal.

AlanP_2

You are thinking about apples and oranges here and trying to compare them.

The NHS pension is a Defined Benefit scheme - There is no pot. There is a promise to pay your wife £x per year once she has retired, for life, with a spouses pension for your life if she dies before you (and it all fully linked to CPI). The scheme rules will show how £x is calculated, based on some proportion of salary accruing as pension each year.

NEST is a Defined Contribution scheme where you do have a pot that is invested. It can go up and down and how much you will be able to safely take from it each year when retired (for what could be 20-40 years) is in the lap of the gods.


I joined a public sector DB scheme after many years with private sector DC schemes and transferred my DC pots in ASAP.

That isn't advice, your wife will need to request a quote from the NHS scheme for what the NEST pot will "buy" her.

MX5huggy

NHS pension online access here:- https://www.nhsbsa.nhs.uk/employee-section

MX5huggy

She has 1 year to transfer into the NHS scheme since becoming eligible for it. She should consider this option it’s good value and a one off opportunity. https://www.nhsbsa.nhs.uk/member-hub/transferring-scheme

Albermarle

Defined benefit: final salary pensions schemes explained | MoneyHelper

Defined Contribution Pension schemes | MoneyHelper

Marcon

JustAnotherSaver said:

Wife's previous workplace pension although working sort of for the NHS was with NEST (pot = approx. £5k). She is now actually employed by the NHS & is paying in to an NHS pension.

She can't actually access her pension details online or anything & any communication with the powers that be, well I think they're well practiced in taking things at a leisurely pace, if leisurely pace means not bothering at all.

As a result, we can't really see any info about her pension. Charges, how much is in there (wont be much at the mo), just nothing at all. Only what her monthly payslip says is getting paid in.

Would probably have to wait until she can access it, whenever that day may be, but would you transfer the NEST pension over to the NHS pension for 1 pot rather than 2?

And for anyone with an NHS pension, how do you actually access it? By access it I'm obviously not talking about getting the money, I'm talking about viewing its progress etc. - logging in to some kind of online portal.

You're looking for things you won't be able to find. As already pointed out, the NHS pension scheme is a defined benefit scheme - a promise to pay, rather than a pot of money. 

Transferring just to have 1 pension rather than 2 isn't a good reason to do so, but there may be other reasons why it could be a good idea. Useful reading before taking any decisions: https://www.thisismoney.co.uk/money/pensions/article-3550085/STEVE-WEBB-merge-small-pension-pots.html

dunstonh

Would probably have to wait until she can access it, whenever that day may be, but would you transfer the NEST pension over to the NHS pension for 1 pot rather than 2?

Depends on retirement objectives.  There can be merit in having a DB pension and a DC pension if you plan to retire earlier than state pension age.  For others having just the one could be the best option.  Its a personal thing based on your personal circumstances.   The amounts involved could come into play as well.  eg. if the NEST pension has peanuts in it vs whether it has a useful amount in it.

JustAnotherSaver

Thanks for the input guys.

Totally wasn't aware that was the situation with the NHS pension. Had only really heard "it's good" but nothing beyond that. Trying to get anything out of her work, she'd seem to have more luck talking to the TV.

From me talking to others who've worked for the NHS, it seems my wife's experience of this is not unique. I'm sure there'll be other people who've experienced the complete opposite to her but anyway, it is what it is.

Looks like you've provided some weekend literature. Hopefully I pop out of the other end less confused.

Dazed_and_C0nfused

JustAnotherSaver said:

Thanks for the input guys.

Totally wasn't aware that was the situation with the NHS pension. Had only really heard "it's good" but nothing beyond that. Trying to get anything out of her work, she'd seem to have more luck talking to the TV.

From me talking to others who've worked for the NHS, it seems my wife's experience of this is not unique. I'm sure there'll be other people who've experienced the complete opposite to her but anyway, it is what it is.

Looks like you've provided some weekend literature. Hopefully I pop out of the other end less confused.

The amount of her contributions and those of her employer don't really matter.

Say for example she's earning £25,000 then she will pay £1,775 (likely real cost of £1,420 after tax relief).

In return she will accrue a pension of £463, which is related to her salary (1/54th) not her contributions.  And the £463 is inflation proofed.

MX5huggy

The bit that’s missed in the £463, is per year for life so from retirement age to death it’s £463 per year. 

A pension of £463 for a cost of £1200 odd sounds rubbish £463 for maybe 30 years for £1200 sounds like a deal! 

QrizB

MX5huggy said:

A pension of £463 for a cost of £1200 odd sounds rubbish £463 for maybe 30 years for £1200 sounds like a deal! 

What would that cost to buy as an RPI-linked annuity, something like £20k?