When to retire NHS

Nebulous2

This is of very little import really as the amounts are very small, and we've had a lot of posts about the optimum retiring date, however the scheme information on the SPPA website doesn't go into this level of detail. 

I retired and took a part-time post with the NHS and started an NHS pension. I'm now thinking about stopping that and wondering what difference timing makes. Its a CARE pension and revalues at CPI + 1.5% while in service, and CPI after I've left, whether deferred or in payment. 

For simplicity say it is worth £1000 a year now, I know some extra months accrual will make it start slightly higher but ignore that for now. Estimate CPI at 3.5% 

Retiring end of February 2026  on £1000. In April do I get the full 3.5% increase for 2026 making £1035 although I've only been retired a month? 

Retiring end of April 2026 it would have revalued at 3.5% + 1.5% so £1050 as a starting pension. Do I then get the full increase in April 27 or do I only get 11/12ths of that as it is pro-rated from my retirement date? 

What about retiring end of March 26 on £1000. Do I get 3.5% or 5% from 6th April, or something else? 

BrilliantButScary

Would this be helpful?

https://www.spfo.org.uk/article/12697/2025-Pension-Increase

Moonwolf

I had a very similar question a little while ago. This thread might help.

https://forums.moneysavingexpert.com/discussion/6521530/nhs-2015-deferred-membership-and-increases/p1

Nebulous2

BrilliantButScary said:

Would this be helpful?

https://www.spfo.org.uk/article/12697/2025-Pension-Increase

Thanks - that's a LGPS fund rather than an NHS one, but the principle that you do not get the full increase unless you have been retired the full year probably still holds true. 

Nebulous2

Moonwolf said:

I had a very similar question a little while ago. This thread might help.

https://forums.moneysavingexpert.com/discussion/6521530/nhs-2015-deferred-membership-and-increases/p1

Thanks - that's an interesting read. I'm not sure why I missed it at the time. Did you get a response to your question to the technical team? 

I'm talking about a fairly modest amount of money, but for my own satisfaction I'd prefer to do it as efficiently as possible. 

Moonwolf

Nebulous2 said:

Moonwolf said:

I had a very similar question a little while ago. This thread might help.

https://forums.moneysavingexpert.com/discussion/6521530/nhs-2015-deferred-membership-and-increases/p1

Thanks - that's an interesting read. I'm not sure why I missed it at the time. Did you get a response to your question to the technical team? 

I'm talking about a fairly modest amount of money, but for my own satisfaction I'd prefer to do it as efficiently as possible. 

I couldn’t get anyone at NHS BSA to really address the question but I ended up after reading and talking to people fairly confident it made no difference.

I retired on the 31st March and although I haven’t taken the pension yet my most recent total reward statement has the revaluation with the 1.5% extra.