How do I work out my 'pension pot'?

PoGee

I'm in nhs pension scheme, 1995 and 2018. Contributions into1995 continued up to March 2022, I think (McCloud judgement). Going by their online calculator, which I used in 2020, I got the following figures (I've been part time due to being a lone parent and then various health issues). If I retire at age 60, pension will be £11000 per year with a £20k lump sum. With commutation, lump sum is £54k and yearly pension £8k.
I have no credit card bill, mortgage, personal loans. I'm a couple or so years off nhs retirement age. I understand that the pension on its own will not be enough to keep me going to state pension age so I invested in property. Allowing for vacant summer months, expenses, letting agent fees, tax, repairs, I should be able to receive another average of £1k per month in cleared rental income.

MX5huggy

It’s not clear what you are asking. The NHS pension has no “pot” it’s a promise to pay the figures you’ve give plus inflation from retirement till death. 

Have you checked your state pension? 

Could you sell the property and use the capital to bridge you to state pension age? 

Marcon

PoGee said:

I'm in nhs pension scheme, 1995 and 2018. Contributions into1995 continued up to March 2022, I think (McCloud judgement). Going by their online calculator, which I used in 2020, I got the following figures (I've been part time due to being a lone parent and then various health issues). If I retire at age 60, pension will be £11000 per year with a £20k lump sum. With commutation, lump sum is £54k and yearly pension £8k.
I have no credit card bill, mortgage, personal loans. I'm a couple or so years off nhs retirement age. I understand that the pension on its own will not be enough to keep me going to state pension age so I invested in property. Allowing for vacant summer months, expenses, letting agent fees, tax, repairs, I should be able to receive another average of £1k per month in cleared rental income.

There's no 'pot' in a defined benefit scheme, nor can you transfer out to a defined contribution scheme where (as here) the DB scheme is unfunded, so not sure why you think it would help? As pointed out above, you've got a pension promise (and a fantastic one most people envy), so factor that in to your calculations and you're good to go.

Dazed_and_C0nfused

PoGee said:

I'm in nhs pension scheme, 1995 and 2018. Contributions into1995 continued up to March 2022, I think (McCloud judgement). Going by their online calculator, which I used in 2020, I got the following figures (I've been part time due to being a lone parent and then various health issues). If I retire at age 60, pension will be £11000 per year with a £20k lump sum. With commutation, lump sum is £54k and yearly pension £8k.
I have no credit card bill, mortgage, personal loans. I'm a couple or so years off nhs retirement age. I understand that the pension on its own will not be enough to keep me going to state pension age so I invested in property. Allowing for vacant summer months, expenses, letting agent fees, tax, repairs, I should be able to receive another average of £1k per month in cleared rental income.

As others have explained there is no pot with the NHS scheme.

The 1995 scheme has a default lump sum of 3x pension so if your pension will be £11,000 the PCLS should be £33k, not £20k.

And it's usually very poor value to take an additional lump sum as you would typically only get £12 for each £1 of inflation proofed income you agree to forego for the rest of your life.

QrizB

Others have explained why there's no pension pot with the NHS schemes.

Why do you want to know? Was it just curiosity, or do you need a cash value for your pension because eg. you are getting divorced?

ggmf

The annual statements should be out soon, do you have your 'current' TRS statement? No idea which part of the NHS you are working in, but it should be available via ESR, if not  requested one.

rnj

Dazed_and_C0nfused said:

PoGee said:

I'm in nhs pension scheme, 1995 and 2018. Contributions into1995 continued up to March 2022, I think (McCloud judgement). Going by their online calculator, which I used in 2020, I got the following figures (I've been part time due to being a lone parent and then various health issues). If I retire at age 60, pension will be £11000 per year with a £20k lump sum. With commutation, lump sum is £54k and yearly pension £8k.
I have no credit card bill, mortgage, personal loans. I'm a couple or so years off nhs retirement age. I understand that the pension on its own will not be enough to keep me going to state pension age so I invested in property. Allowing for vacant summer months, expenses, letting agent fees, tax, repairs, I should be able to receive another average of £1k per month in cleared rental income.

As others have explained there is no pot with the NHS scheme.

The 1995 scheme has a default lump sum of 3x pension so if your pension will be £11,000 the PCLS should be £33k, not £20k.

And it's usually very poor value to take an additional lump sum as you would typically only get £12 for each £1 of inflation proofed income you agree to forego for the rest of your life.

It depends how you look at it. I will personally be taking my pension early and maximum lump sum as I'd rather the money when I'm younger. Yes, if I live to a grand old age it will in the long run be better to not do this but I don't want to be a wealthier old person.

QrizB

rnj said:

Dazed_and_C0nfused said:

And it's usually very poor value to take an additional lump sum as you would typically only get £12 for each £1 of inflation proofed income you agree to forego for the rest of your life.

It depends how you look at it. I will personally be taking my pension early and maximum lump sum as I'd rather the money when I'm younger. Yes, if I live to a grand old age it will in the long run be better to not do this but I don't want to be a wealthier old person.

For many people (and even at current interest rates) it would make more sense to take out (or extend) a mortgage and repay it from the extra pension, rather than take 12:1 commutation.

Pat38493

The commutation rates for the lump sum on the NHS pensions are very bad if you take anything more than the mandatory lump sum.  Many posters on here would recommend not to take the increased lump sum on this type of pension, because you only have to live 12 years (less than 12 years after you factor in the inflation increases on the pension payments), before you are better off not taking the lump sum.

Flugelhorn

Just to say that occasions it has been a better deal to take a bit more, I took an extra chunk + to  avoid LTA tax (but now that isn't going to be an issue for people  )

Albermarle

Yes, if I live to a grand old age it will in the long run be better 

If you took the pension at say 65, then by around age 75/76 you will be losing out every year from then on by taking the lump sum.

A person aged 65 will on average live another 20 years and has a good chance of reaching 90+ especially if they have no serious health issues, very bad habits etc