NHS 1995 pension.

Purpleheart

Perhaps frozen is the wrong word but the other posters know what I mean so we'll leave it at that. 

GrubbyGirl_2

Your pension isn't frozen it just means that after 2022 your became a member of the 2015 scheme.  Your 1995 pension is based on the best year of the last 3 years salary when you retire.  On the 1995 scheme you can retire at 60 but in the 2015 scheme you can't draw it until your 65 without reduction.  If you retire at 60 you will get your full 1995 pension plus 76% of your 2015 if you take it then.  Alternatively you can leave it where it will be frozen until you're 65 and you'll then get 100% plus yearly inflation

hugheskevi

GrubbyGirl_2 said:

On the 1995 scheme you can retire at 60 but in the 2015 scheme you can't draw it until your 65 without reduction. 

It is State Pension age, not 65, when the post-2015 scheme can be commenced without actuarial reduction (assuming no ERRBO has been purchased).

If you retire at 60 you will get your full 1995 pension plus 76% of your 2015 if you take it then.  Alternatively you can leave it where it will be frozen until you're 65 and you'll then get 100% plus yearly inflation

The latest factors would give a reduction to 77.7% if taken 5 years early. However, the OP has not given their age, they may well have a State Pension age of 67, in which case the post-2015 pension would be reduced to 71.1% if taken at age 60.

Marcon

Purpleheart said:

Thank you Hugh, that's exactly what I needed to know. I'm aware I'm no longer paying in to the 1995 but I wasn't sure about the final salary link. Also good news as I was part time in 2022 and I'm now full time so my pension will be better than I expected hopefully.

In a final salary scheme, benefits are based on Whole Time Equivalent salary, and pensionable service is adjusted. This is to avoid penalising people who switch from full time to part time; and to avoid a bumper gain if someone who has always worked part time goes full time in the last year or so of their career.

Purpleheart

I'm retiring on my 60th birthday, taking my 1995 pension and will take my 2015 pension when I'm 67 for those that were wondering.

No bumper gain Marcon I've gone from 4.5 days to 5 days. 

Bobinyorkshire

Have you managed to get an accurate estimate now you’ve been rolled back into the legacy scheme? My intention was to take the 95 and reduced 2015 at 60 as I figured the money will be more useful early on and by 67 the state pension kicks in

Purpleheart

Bobinyorkshire said:

Have you managed to get an accurate estimate now you’ve been rolled back into the legacy scheme? My intention was to take the 95 and reduced 2015 at 60 as I figured the money will be more useful early on and by 67 the state pension kicks in

No but not for want of trying. ESR hasn't been updated and the pension people aren't giving out that information at the moment. It's all one big guesstimate, I'll retire and hope for the best!

Bobinyorkshire

Keep trying. I got an estimate in the end. It’s reassuring to see it written down 😀