Nhs pension seeking advice

Purplelady65

From 1st April 2023 members of the 1995 schemes can access their benefits but continue to pay into the 2015 pension scheme. 

KaMelo - interesting to read your calculations. I agree with you that pay increases will not necessarily be above inflation year on year. There have been many years of pay increases in the NHS of 0.5% or 1% pay increase and the increase in the pension payment has been a  higher % than that. 

Monkey1000 - as KaMelo suggests you need to look into abatement as this could have an impact on your earnings and taxes in the future. 

GrubbyGirl_2

Purplelady65 said:

From 1st April 2023 members of the 1995 schemes can access their benefits but continue to pay into the 2015 pension scheme. 

KaMelo - interesting to read your calculations. I agree with you that pay increases will not necessarily be above inflation year on year. There have been many years of pay increases in the NHS of 0.5% or 1% pay increase and the increase in the pension payment has been a  higher % than that. 

Monkey1000 - as KaMelo suggests you need to look into abatement as this could have an impact on your earnings and taxes in the future. 

Abatement is a risk as they have only suspended it until 2025 

Pat38493

Lowtrawler said:

This is related to something I have posted on before. Those who have pensions in both the 1995 sections and 2015 sections have been effectively disadvantaged by being unable to take their 1995 pensions at 55/60  and continue to pay into the 2015 scheme as the only increases after these ages are linked to changes in salary which would take an exceptionally long time to recover the lost pension income.

As I understand it, under the recent pension changes, employees are to be given an option to take their 1995 pension at 55/60 and continue to pay into the 2015 scheme. Unless you expect to get a significant promotion, I believe this would invariably be the best option. Can anyone confirm if individuals can take their 1995 scheme pension at 55/60 and continue paying into the 2015 scheme without restrictions or are there special rules?

Could they put their 1995 pension into payment and pay most or all of it into a SIPP (matching against their ongoing work income)?

Lowtrawler

GrubbyGirl_2 said:

Purplelady65 said:

From 1st April 2023 members of the 1995 schemes can access their benefits but continue to pay into the 2015 pension scheme. 

KaMelo - interesting to read your calculations. I agree with you that pay increases will not necessarily be above inflation year on year. There have been many years of pay increases in the NHS of 0.5% or 1% pay increase and the increase in the pension payment has been a  higher % than that. 

Monkey1000 - as KaMelo suggests you need to look into abatement as this could have an impact on your earnings and taxes in the future. 

Abatement is a risk as they have only suspended it until 2025 

As I understand it, abatement only applies until age 60 for 1995 scheme members? This being the case, my wife will be 60 in 2024 and so abatement will not be a risk.

To confirm my previous question. Are there any restrictions on continuing in employment, taking the 1995 scheme benefits and paying into the 2015 scheme? I know you used to need a 24hr break and much reduced hours - any restrictions under the new rules?

Lowtrawler

Pat38493 said:

Lowtrawler said:

This is related to something I have posted on before. Those who have pensions in both the 1995 sections and 2015 sections have been effectively disadvantaged by being unable to take their 1995 pensions at 55/60  and continue to pay into the 2015 scheme as the only increases after these ages are linked to changes in salary which would take an exceptionally long time to recover the lost pension income.

As I understand it, under the recent pension changes, employees are to be given an option to take their 1995 pension at 55/60 and continue to pay into the 2015 scheme. Unless you expect to get a significant promotion, I believe this would invariably be the best option. Can anyone confirm if individuals can take their 1995 scheme pension at 55/60 and continue paying into the 2015 scheme without restrictions or are there special rules?

Could they put their 1995 pension into payment and pay most or all of it into a SIPP (matching against their ongoing work income)?

I have currently arranged it so there is virtually no taxable income to use after making Additional Pension contributions into the 2015 scheme and so probably not.

GrubbyGirl_2

Lowtrawler said:

GrubbyGirl_2 said:

Purplelady65 said:

From 1st April 2023 members of the 1995 schemes can access their benefits but continue to pay into the 2015 pension scheme. 

KaMelo - interesting to read your calculations. I agree with you that pay increases will not necessarily be above inflation year on year. There have been many years of pay increases in the NHS of 0.5% or 1% pay increase and the increase in the pension payment has been a  higher % than that. 

Monkey1000 - as KaMelo suggests you need to look into abatement as this could have an impact on your earnings and taxes in the future. 

Abatement is a risk as they have only suspended it until 2025 

As I understand it, abatement only applies until age 60 for 1995 scheme members? This being the case, my wife will be 60 in 2024 and so abatement will not be a risk.

To confirm my previous question. Are there any restrictions on continuing in employment, taking the 1995 scheme benefits and paying into the 2015 scheme?

I was referring to the original poster who is only 52.  Might be sensible if you start your own thread to answer your question