NHS retirement at 55 21 January at 2:52PM in Pensions, annuities & retirement planning 11 replies 1.2K views

joop123

I am considering the retire and return option . Just trying to make some informed decisions. 

I am at the very early stages of deciding what to do. At the moment it seems extremely confusing.   I am in the 1995 and the 2015 pension schemes.

Ideally I would like to draw my 1995 pension early. Can anyone tell me if I pay tax on the lump sum (have read different thoughts)

many thanks 

Dazed_and_C0nfused

Can anyone tell me if I pay tax on the lump sum (have read different thoughts)

Where have you read it's taxable (assuming you mean the PCLS).

R20223

NHS.       Pension
lump sum payments are tax free both schemes 

joop123

Dazed_and_C0nfused said:

Can anyone tell me if I pay tax on the lump sum (have read different thoughts)

Where have you read it's taxable (assuming you mean the PCLS).

Yes I’m referring to the lump sum received once you take your pension…..just unsure about if the amount is taxable? 

Stubod

From what I rember the lump sum is tax free and is equivalent to 3 times your annual pension.

NB If you are in the 1995 scheme and retire an return you may not be able to continue paying into the NHS pension scheme on your return?

Probably worth a check with NHS pensions, in general they are quite helpful although I did get some conflicting advice depending who I spoke to, so it is well worth doing your own research as well?

Depending on your circumstances (financial/helth), unless you are a "special case" and can retire at 55 I would seriously consider not retiring just so that you can take your pension if you are intending to continue to work anyway? This will have a significant (negative) impact on your final pension, particulalrly if you find (as I beleive), you are unable to continue paying into the NHS pension scheme?

joop123

Yes thank you.
still at very early stages of planning.
I am in both schemes and understand that if I return to work I can continue paying into the 2015 scheme.
To be honest it does seem very confusing…. I am waiting for the NHS pensions department to reply.
No doubt I will have many questions…

R20223

Try nhs pension hub 
https://www.nhsbsa.nhs.uk/member-hub/your-options-flexible-retirement

 Retire and return

From April 2023, under the proposed changes all members will have the option to retire and re-join the pension scheme.

If you  are not ready to stop work altogether, you can retire and take your full pension, then return to work after a break of at least 24 hours and re-join the 2015 NHS Pension Scheme to earn further benefits.

This is already available to members of the 2008 Section or 2015 Scheme. Once the changes take effect on 1 April 2023, it’ll also be an option for members who have retired with 1995 Section benefits.

Under the proposed changes, the DHSC is also intending to allow members with benefits in the 1995 and 2008 Sections, who are currently non-pensionable because they have exceeded maximum service limits and therefore had to stop contributing, to join the 2015 Scheme. The age limit for 2015 Scheme membership (75 years) will still apply.

joop123

R20223 said:

Try nhs pension hub 
https://www.nhsbsa.nhs.uk/member-hub/your-options-flexible-retirement

 Retire and return

From April 2023, under the proposed changes all members will have the option to retire and re-join the pension scheme.

If you  are not ready to stop work altogether, you can retire and take your full pension, then return to work after a break of at least 24 hours and re-join the 2015 NHS Pension Scheme to earn further benefits.

This is already available to members of the 2008 Section or 2015 Scheme. Once the changes take effect on 1 April 2023, it’ll also be an option for members who have retired with 1995 Section benefits.

Under the proposed changes, the DHSC is also intending to allow members with benefits in the 1995 and 2008 Sections, who are currently non-pensionable because they have exceeded maximum service limits and therefore had to stop contributing, to join the 2015 Scheme. The age limit for 2015 Scheme membership (75 years) will still apply.

Thanks. Yes this is the scheme I would hope to join. I need to discuss with the nhs pensions people and be confident on the numbers!

GrubbyGirl_2

Think carefully of retiring early and returning to work.  You will lose 20% of your pension by going at 55 unless you're special class.  May not seem much if you're continuing work, but will be when you're no longer working.

joop123

GrubbyGirl_2 said:

Think carefully of retiring early and returning to work.  You will lose 20% of your pension by going at 55 unless you're special class.  May not seem much if you're continuing work, but will be when you're no longer working.

Thanks. Fortunately I am in the special class. Hoping the other figures work out 🤞

GrubbyGirl_2

joop123 said:

GrubbyGirl_2 said:

Think carefully of retiring early and returning to work.  You will lose 20% of your pension by going at 55 unless you're special class.  May not seem much if you're continuing work, but will be when you're no longer working.

Thanks. Fortunately I am in the special class. Hoping the other figures work out 🤞

Lucky you..........mind you I thought I was in special class too but when I tried to retire at 55 they argued they made a mistake on my TRS and I wasn't as I was in management.  I had to provide all my JDs in my management posts to prove I was required to be a nurse to be a nurse manager and I was unable to get one from 1991 to 1995 as the HA didn't exist and neither did the records.  I had all the others myself.  It cost me 5 more years at work but the Ombudsman made them pay ne £5,000 in compensation.  Worked out well though as I got a promotion for my last 5 years so ended up with a much better pension