Transferring pensions into NHS pension

cafelady

Hi. I started work in an NHS job 8 months ago and joined the pension scheme. I currently have a contract that will take me to two years’ employment and this may be extended beyond that. I have two DB LGPS pensions which will pay out just under £7k per year at 60. 

I also have two cash balance pensions from previous employers, one worth around £870 and another around £10200. I’m thinking of transferring these into the NHS scheme. I’m currently 57 years old, and hoping to retire by 60. My partner has a reasonable occupational pension and will get sp when I am 60. 

Any thoughts on this plan to transfer these cash balance schemes over to the NHS scheme?

Thanks for reading. 

Silvertabby

Even £10,200 isn't a lot in pensionspeak, so transferring these two pensions into the NHS scheme certainly makes sense.  Don't leave it too long - you have to at least set the ball rolling before your 12 month point.  

cafelady

Thank you @Silvertabby  : )

GrubbyGirl_2

Just be aware that if you retire at 60 and are planning to take your NHS pension at 60 it will be reduced by 31% and it may be more if Rachel Reeves increase the state pension age

Andy_L

Is the LGPS the older final salary one or the newer career average one?

Andy_L

GrubbyGirl_2 said:

Just be aware that if you retire at 60 and are planning to take your NHS pension at 60 it will be reduced by 31% and it may be more if Rachel Reeves increase the state pension age

The LGPS is probably being decreased for taking it at 60, with the numbers it seems unlikely that the OP has ruled of 85 rights to take it at 60 unreduced 

GunJack

OP you won't get your state pension at 60, more like 67. 

cafelady

Hi @GunJack. No my partner will get sp when I am 60. Not thinking I will get it then sadly! 🤣 

cafelady

Andy_L said:

Is the LGPS the older final salary one or the newer career average one?

Hi @Andy_L , I’ve got a pension in each. Older one is payable at 60 without reduction. But it’s moving the cash balance pensions to NHS then taking at 60 that is more the issue for me. 

cafelady

GrubbyGirl_2 said:

Just be aware that if you retire at 60 and are planning to take your NHS pension at 60 it will be reduced by 31% and it may be more if Rachel Reeves increase the state pension age

Thanks @GrubbyGirl_2. That’s useful. So in effect I could be losing a third of what I transfer across if I took NHS pension at 60?

QrizB

cafelady said:

GrubbyGirl_2 said:

Just be aware that if you retire at 60 and are planning to take your NHS pension at 60 it will be reduced by 31% and it may be more if Rachel Reeves increase the state pension age

Thanks @GrubbyGirl_2. That’s useful. So in effect I could be losing a third of what I transfer across if I took NHS pension at 60?

Not exactly.

You'll be recieving pension benefits for 7 more years than if you waited to 67.

Let's just imagine that your £10k buys you £600pa of pension at age 67. Taking it at 60 you might only get £414pa. But over seven years that's £2900 that you get back up-front, before normal retirement age.