Best ways to retire before 68 in the NHS pension

Rich1976

Kristoff77 said:

Thankyou for the replies. I hadn't even thought about a private pension and I'll have to read up about this a bit, I presume it won't negatively impact my state or NHS pension? Mu salary isn't high. I was thinking a LISA or S&S isa could be the way to go but unfortunately I've missed out on the S&S LISA (I opened a cash one at 39). Also a personal pension would mean someone could invest for me as I have no knowledge of investments.

Yes you can have a private pension on top of your work one and as long as you don’t contribute more than the limits allow each year which is your annual salary or 40k then it doesn’t affect anything.

if you have no knowledge of investments a multi asset fund or a global tracker could be the answer but you would need to understand your tolerance for risk first before deciding which fund is most suitable eg how would you react if the markets went down 30% or more? Many people only concentrate on trying to pick funds which have the potential to generate the biggest returns and it’s only when there is a crash they realise they’ve invested well above their risk tolerance ( myself included ). So do your research and do what’s best for you and not what everyone else seems to be investing in

Kim1965

I thought it was a very common theme in the nhs to take the pension in  your late 50s and work part time.?
 If possible save into a sipp to give some independence and flexibility. 

ewaste

Kim1965 said:

I thought it was a very common theme in the nhs to take the pension in  your late 50s and work part time.?
 If possible save into a sipp to give some independence and flexibility. 

It was a very common theme for those in the 1995 scheme with a normal retirement age of 60, favourable actuarial reductions and special classes as well. The 2015 scheme is tied to state pension age and earlier retirement is less favourable than previous schemes, still 'cost neutral'. You'd end up with a fraction of your accrued pension in the 2015 scheme taking it in your 50's.

Purplelady65

ewaste said:

Kim1965 said:

I thought it was a very common theme in the nhs to take the pension in  your late 50s and work part time.?
 If possible save into a sipp to give some independence and flexibility. 

It was a very common theme for those in the 1995 scheme with a normal retirement age of 60, favourable actuarial reductions and special classes as well. The 2015 scheme is tied to state pension age and earlier retirement is less favourable than previous schemes, still 'cost neutral'. You'd end up with a fraction of your accrued pension in the 2015 scheme taking it in your 50's.

With the 2015 scheme the earliest the pension can be taken early with an actuarial reduction is 60 so taking the pension before then isn’t an option anyway. The 1995 scheme can be taken early from age 55 if normal pension age is 60 although as you say above special classes still applies to some people. 

Albermarle

Kristoff77 said:

Thankyou for the replies. I hadn't even thought about a private pension and I'll have to read up about this a bit, I presume it won't negatively impact my state or NHS pension? Mu salary isn't high. I was thinking a LISA or S&S isa could be the way to go but unfortunately I've missed out on the S&S LISA (I opened a cash one at 39). Also a personal pension would mean someone could invest for me as I have no knowledge of investments.

It seems odd that you are nervous about investing in a personal pension, but happy to open a S&S ISA or S&S LISA?
It is all investing just the same .

DoublePolaroid

Purplelady65 said:

ewaste said:

Kim1965 said:

I thought it was a very common theme in the nhs to take the pension in  your late 50s and work part time.?
 If possible save into a sipp to give some independence and flexibility. 

It was a very common theme for those in the 1995 scheme with a normal retirement age of 60, favourable actuarial reductions and special classes as well. The 2015 scheme is tied to state pension age and earlier retirement is less favourable than previous schemes, still 'cost neutral'. You'd end up with a fraction of your accrued pension in the 2015 scheme taking it in your 50's.

With the 2015 scheme the earliest the pension can be taken early with an actuarial reduction is 60 so taking the pension before then isn’t an option anyway. The 1995 scheme can be taken early from age 55 if normal pension age is 60 although as you say above special classes still applies to some people. 

The current minimum pension age in the 2015 scheme is 55, and retiring thus would result in an actuarial reduction of 47%

Refs here and here.

hyubh

Purplelady65 said:

ewaste said:

Kim1965 said:

I thought it was a very common theme in the nhs to take the pension in  your late 50s and work part time.?
 If possible save into a sipp to give some independence and flexibility. 

It was a very common theme for those in the 1995 scheme with a normal retirement age of 60, favourable actuarial reductions and special classes as well. The 2015 scheme is tied to state pension age and earlier retirement is less favourable than previous schemes, still 'cost neutral'. You'd end up with a fraction of your accrued pension in the 2015 scheme taking it in your 50's.

With the 2015 scheme the earliest the pension can be taken early with an actuarial reduction is 60 so taking the pension before then isn’t an option anyway. The 1995 scheme can be taken early from age 55 if normal pension age is 60 although as you say above special classes still applies to some people. 

That's not correct, the minimum pension age of the 2015 scheme is 55 (see here: https://www.nhsbsa.nhs.uk/sites/default/files/2019-08/Early Retirement factsheet (05.2017) V3.pdf) 

Purplelady65

Apologies @DoublePolaroid and @hyubh yes you’re correct it is 55 minimum age where the pension can be accessed early in the 2015 scheme. Sorry. 

Albermarle

DoublePolaroid said:

Purplelady65 said:

ewaste said:

Kim1965 said:

I thought it was a very common theme in the nhs to take the pension in  your late 50s and work part time.?
 If possible save into a sipp to give some independence and flexibility. 

It was a very common theme for those in the 1995 scheme with a normal retirement age of 60, favourable actuarial reductions and special classes as well. The 2015 scheme is tied to state pension age and earlier retirement is less favourable than previous schemes, still 'cost neutral'. You'd end up with a fraction of your accrued pension in the 2015 scheme taking it in your 50's.

With the 2015 scheme the earliest the pension can be taken early with an actuarial reduction is 60 so taking the pension before then isn’t an option anyway. The 1995 scheme can be taken early from age 55 if normal pension age is 60 although as you say above special classes still applies to some people. 

The current minimum pension age in the 2015 scheme is 55, and retiring thus would result in an actuarial reduction of 47%

Refs here and here.

For the OP's benefit, the commutation rate of 3.6% ( 47%/13) is on the low side, which is good.

Pipkin1812

Interesting point about protection of retirement age by McCloud on the original scheme. If you’ve been moved across to the new scheme would that apply to any pension built up since the change in scheme?