Help understanding NHS pension for someone who has always been (sort of) self employed

OldBeanz

SomeMadeUpName said:

JoeCrystal said:

Or if you got personal pension, transfer it in and don't have to worry about two years limit.

Hi, so yes, I saw that, so....

If she starts work and then gets a few small payments into the scheme under her belt.  She can then transfer in all (or a portion of) her personal pension and that buys her more income in retirement, and by doing that she also 'vests' her entitlement early?

Is that right?

And I assume it's also pretty good value in terms of return (early demise excepted)!

Yes. Transfer in of a pension will ensure an NHS pension. There is a time limit to transfer in (a year for most gov based schemes) and you have to be given the figures for the transfer so if that is what you want to do then start the process as soon as you can.   

JoeCrystal

SomeMadeUpName said:

JoeCrystal said:

Or if you got personal pension, transfer it in and don't have to worry about two years limit.

Hi, so yes, I saw that, so....

If she starts work and then gets a few small payments into the scheme under her belt.  She can then transfer in all (or a portion of) her personal pension and that buys her more income in retirement, and by doing that she also 'vests' her entitlement early?

Is that right?

And I assume it's also pretty good value in terms of return (early demise excepted)!

Yes. NHS staffs are still pretty much paying peanuts for generous benefits.

SomeMadeUpName

OldBeanz said:

SomeMadeUpName said:

JoeCrystal said:

Or if you got personal pension, transfer it in and don't have to worry about two years limit.

Hi, so yes, I saw that, so....

If she starts work and then gets a few small payments into the scheme under her belt.  She can then transfer in all (or a portion of) her personal pension and that buys her more income in retirement, and by doing that she also 'vests' her entitlement early?

Is that right?

And I assume it's also pretty good value in terms of return (early demise excepted)!

Yes. Transfer in of a pension will ensure an NHS pension. There is a time limit to transfer in (a year for most gov based schemes) and you have to be given the figures for the transfer so if that is what you want to do then start the process as soon as you can.   

Would you have to transfer in the full value of a personal pension (eg if my wife had £25k in her pension, could she transfer in only £10k or £15k?  If it has to be all could I open her another SIPP transfer £10k from her existing to that, then all of that to NHS?

SomeMadeUpName

JoeCrystal said:

SomeMadeUpName said:

JoeCrystal said:

Or if you got personal pension, transfer it in and don't have to worry about two years limit.

Hi, so yes, I saw that, so....

If she starts work and then gets a few small payments into the scheme under her belt.  She can then transfer in all (or a portion of) her personal pension and that buys her more income in retirement, and by doing that she also 'vests' her entitlement early?

Is that right?

And I assume it's also pretty good value in terms of return (early demise excepted)!

Yes. NHS staffs are still pretty much paying peanuts for generous benefits.

Yesterday when I used an online calculator for how much buying APCs (additional pension contributions) would cost in to NHS, it seemed to say £1k pa in retirement (with spousal benefit) would cost circa £17k at age 59 (bit older than she is).  Do you know if the income to benefit ratio on transferring in a pension pot is better/same/worse than that by any chance?

QrizB

SomeMadeUpName said:

JoeCrystal said:

SomeMadeUpName said:

JoeCrystal said:

Or if you got personal pension, transfer it in and don't have to worry about two years limit.

Hi, so yes, I saw that, so....

If she starts work and then gets a few small payments into the scheme under her belt.  She can then transfer in all (or a portion of) her personal pension and that buys her more income in retirement, and by doing that she also 'vests' her entitlement early?

Is that right?

And I assume it's also pretty good value in terms of return (early demise excepted)!

Yes. NHS staffs are still pretty much paying peanuts for generous benefits.

Yesterday when I used an online calculator for how much buying APCs (additional pension contributions) would cost in to NHS, it seemed to say £1k pa in retirement (with spousal benefit) would cost circa £17k at age 59 (bit older than she is).  Do you know if the income to benefit ratio on transferring in a pension pot is better/same/worse than that by any chance?

At current annuity rates, a 60 year old would have to pay £21400 to buy a £1k RPI-linked annuity (and that's without a survivor pension). £17k at 59 for CPI linked with survivor seems reasonable, possibly even a bargain.

https://www.hl.co.uk/retirement/annuities/best-buy-rates

MX5huggy

The other option is she gets the NHS job and transfers in some or all her other pensions swapping DC pension for DB pension and then the 2 year vesting period is irrelevant.

You have to do the transfer in the first 12 months of NHS employment.