NHS Partial Retirement Queries

penguin10

Hi - I am in the early stages of looking into this & hope some knowledgeable person can help please.
I joined scheme in 1994 and having worked part time for some years, I have almost 28 years service in 1995 scheme.  No special class applies.
1. When using the calculator, it mentions a 'safe' % to take (around 70/75%) in order to avoid an overpayment at a later date.  I assume this relates to McCloud.
Can anyone let me know what the risk is?  I thought at some stage, it would be calculated what benefits on old scheme vs new would be and the most beneficial would be chosen?
I will always choose more lump sum vs monthly pension if that matters (personal reasons involved here).
2. If I took all 1995 scheme benefits now and continued to work for another number of years contributing to 2015 scheme, is death benefit of 2 full years pay still payable?
3. Am I correct in thinking there's no great reason NOT to utilise partial retirement in general?  I am not expecting any promotions so to me, at this early stage, it makes sense to collect 7 years of pension of eg £1,000 per month whilst earning £750 less per month and working less hours/ less stressful job? and also having lump sum to spend/save!

BrilliantButScary

I would recommend going on the 'NHS Pensions Chat: membership led discussion' on Facebook, some very knowledgeable people.

Have you discussed partial retirement with your manager yet, as getting agreement to this in my experience is not a foregone conclusion.

I presume you know that if you don't claim your 1995 pension at 60 you miss out, as you cannot back claim it.

https://www.nhsbsa.nhs.uk/member-hub/partial-retirement

BrilliantButScary

Another thread you might find useful:

https://forums.moneysavingexpert.com/discussion/6568035/nhs-1995-pension-doesnt-grow-after-60/p2

Purplelady65

In your post you haven’t given your age. Are you  looking at taking your 1995 pension before you’re 60 years old or when you turn 60? 

penguin10

BrilliantButScary said:

I would recommend going on the 'NHS Pensions Chat: membership led discussion' on Facebook, some very knowledgeable people.

Have you discussed partial retirement with your manager yet, as getting agreement to this in my experience is not a foregone conclusion.

I presume you know that if you don't claim your 1995 pension at 60 you miss out, as you cannot back claim it.

https://www.nhsbsa.nhs.uk/member-hub/partial-retirement

Thank you - I will take a look at the FB page 

Very early discussions with manager but it won't be a problem.

Not sure what you mean  'can't back claim it' ? I know I can't collect it at age 67 but expect payment back to age 60 if thats what you mean?

penguin10

Purplelady65 said:

In your post you haven’t given your age. Are you  looking at taking your 1995 pension before you’re 60 years old or when you turn 60? 

Thank you - I will be 60 next year so won't be claiming it until I reached normal retirement age

Lowtrawler

Have you considered retire and return? That would allow you to claim your 1995 pension, continue in the 2015 scheme and not require any change to your hours.

penguin10

No I am happy with the partial retirement plan - its really just the few specific queries I am stuck at for now  

Flugelhorn

penguin10 said:

BrilliantButScary said:

I would recommend going on the 'NHS Pensions Chat: membership led discussion' on Facebook, some very knowledgeable people.

Have you discussed partial retirement with your manager yet, as getting agreement to this in my experience is not a foregone conclusion.

I presume you know that if you don't claim your 1995 pension at 60 you miss out, as you cannot back claim it.

https://www.nhsbsa.nhs.uk/member-hub/partial-retirement

Thank you - I will take a look at the FB page 

Very early discussions with manager but it won't be a problem.

Not sure what you mean  'can't back claim it' ? I know I can't collect it at age 67 but expect payment back to age 60 if thats what you mean?

that's thing - unfortunately some people delay taking it thinking they will get the money back that they didn't take at the proper time - doesn't work like that (as you realise) 

penguin10

Flugelhorn said:

penguin10 said:

BrilliantButScary said:

I would recommend going on the 'NHS Pensions Chat: membership led discussion' on Facebook, some very knowledgeable people.

Have you discussed partial retirement with your manager yet, as getting agreement to this in my experience is not a foregone conclusion.

I presume you know that if you don't claim your 1995 pension at 60 you miss out, as you cannot back claim it.

https://www.nhsbsa.nhs.uk/member-hub/partial-retirement

Thank you - I will take a look at the FB page 

Very early discussions with manager but it won't be a problem.

Not sure what you mean  'can't back claim it' ? I know I can't collect it at age 67 but expect payment back to age 60 if thats what you mean?

that's thing - unfortunately some people delay taking it thinking they will get the money back that they didn't take at the proper time - doesn't work like that (as you realise) 

Thank you - Its quite scary how there are so many who are not clued into pension info at all  the fb group is very useful

Moonwolf

penguin10 said:

Hi - I am in the early stages of looking into this & hope some knowledgeable person can help please.
I joined scheme in 1994 and having worked part time for some years, I have almost 28 years service in 1995 scheme.  No special class applies.
1. When using the calculator, it mentions a 'safe' % to take (around 70/75%) in order to avoid an overpayment at a later date.  I assume this relates to McCloud.
Can anyone let me know what the risk is?  I thought at some stage, it would be calculated what benefits on old scheme vs new would be and the most beneficial would be chosen?
I will always choose more lump sum vs monthly pension if that matters (personal reasons involved here).
2. If I took all 1995 scheme benefits now and continued to work for another number of years contributing to 2015 scheme, is death benefit of 2 full years pay still payable?
3. Am I correct in thinking there's no great reason NOT to utilise partial retirement in general?  I am not expecting any promotions so to me, at this early stage, it makes sense to collect 7 years of pension of eg £1,000 per month whilst earning £750 less per month and working less hours/ less stressful job? and also having lump sum to spend/save!

1.  I'm afraid I don't know about the safe% this is a new one on me. 

It is up to you to work out which is the most beneficial. When you put in for retirement you will get both figures, if you take the years in 1995 or in 2015.  The first thing I would do is check what state pension you are entitled to.  Then you can work out if you take the years in 1995 what that will be, if you work another 2 years what your 2015 will probably be and add your state pension.  If that is enough to live on, fine.  If it isn't then you might find you get a bigger total pension if you choose to take your McCloud years in the 2015 scheme.  There is no automatic lump sum in the 2015 but if you take your McCloud years in 1995 you will get a bigger lump sum.

In general most people find 1995 is the most beneficial but the fact that 2015 is 1/54ths instead of 1/80ths and it grows by 1.5% over inflation while you are still paying in means that if you don't need a big lump sum and you expect to work to 67 you will get a bigger total pension taking the McCloud in 2015.

2.  Yes, death benefit is payable as long as you are paying into the pension.  Also a spouse of civil partner gets 50% of your 1995 pension but only 33% of your 2015.

3. Yes, once you have taken your 1995 pension then your 1995 pension is unaffected by your salary and your 2015 salary already accrued isn't affected, you will just add a bit less to it.