Independent advice on nhs pension

Pearlythomas

Hi,

I have worked for the NHS for 23 years and I am in a middle management post . Recently been diagnosed with burnout and want to take a couple of year’s break from the NHS but and not sure how this will impact my pension. 

At 54,  I have also woken up to realise I need to plan my finances and retirement better. 

I tried calling the NHS pension helpline for advice but I didn’t find it very helpful. Can anyone recommend an affordable and reliable financial advice service who would be able to help me plan my future finances and retirement? 

Thanks 

Marcon

Pearlythomas said:

Hi,

I have worked for the NHS for 23 years and I am in a middle management post . Recently been diagnosed with burnout and want to take a couple of year’s break from the NHS but and not sure how this will impact my pension. 

At 54,  I have also woken up to realise I need to plan my finances and retirement better. 

I tried calling the NHS pension helpline for advice but I didn’t find it very helpful. Can anyone recommend an affordable and reliable financial advice service who would be able to help me plan my future finances and retirement? 

Thanks 

The pension helpline isn't allowed to give you advice - only information.

A good independent financial adviser (make sure they are independent) will be able to help you. 

imreadyforbed

I work for NHS , i took a one year career break and it wont effect my pension that has been confirmed. I wonder if you can apply for that or poss longer if you need it ? unless you want to leave your job ? 

xylophone

Presumably you have read through

https://www.nhsbsa.nhs.uk/sites/default/files/2023-04/1995-2008_Members_Guide_(V24)_04.2023.pdf

Re advice - you could try

https://adviserbook.co.uk/

Tick "confirmed independent" and other options required when the menu comes up.

Moonwolf

Unfortunately your future options have been "clouded" by the McCloud judgement but also simplified by the new pension flexibility.

At a basic level you can take a break of up to 5 years and rejoin the scheme.

You will be accruing in the 2015 scheme now, since April 2022 so if you take a career break you will just not earn pension for that period.  As I understand it if you take a break of less than 5 years your accrued pension grows at CPI+1.5% while with a longer break it only grows at CPI during the period that you weren't working.  The big advantage of the 2015 scheme is that each year's accrued pot is unaffected by other years, so a reduction in hours or salary doesn't hurt in the same way as a final salary.

For the 1995 scheme, re-joining within 5 years means that your final salary when you finally retire or take your pension is taken into account.  I believe this is still true if you take a break and re-join and are now in the 2015 scheme although I have struggled to find this explicitly.  If you took a break of more than 5 years then your 1995 pension would become deferred and based on the salary at the time you left.

Under the McCloud judgement you will have some flexibility to take the years between 2015 and 2022 in either scheme.  https://www.nhsbsa.nhs.uk/changes-public-service-pensions/public-services-pension-remedy-mccloud-remedy

As you are 54, one option, if you can wait until your are 55 might be to take your 1995 pension early with an actuarial
reduction (about 25% cut in the value).  Use your lump sum and reduced pension to live for a year or so, then go back full or part time and accrue more into the 2015 scheme.  This could be a great option as you could take a less stressful job, you would still be accruing pension and you have your 1995 pension income topping up your work earnings.  https://www.nhsbsa.nhs.uk/member-hub/partial-retirement