NHS Pension - early retirement work out?

Avro1995

Hi there

My partner works for the NHS and is a member of 1995 and 2015 schemes respectively. We are just wanting to find out how to get projections of if she wants to retire early but are finding it incredibly difficult to work out how to do this.

Understand that the 1995 scheme is normal retirement age of 60 and the 12015 is 67 years and 8 months.

We have her Annual benefit statement too and have tried using calculators but don't think its correct. For reference she is still working there and will continue to do so.

In summary:

1) What is the best/easiest way to work out what her likely benefits would be if she were to take the pensions at different ages EG. 58, 59 and so on. Understanding that both pensions would be reduced for leaving early, particularly the 2015 one due to the length till NPA.

2) On the ABS under the 1995 section it tells me the standard benefits at NPA of 60 - does this increase every year? As in is it still affected by her salary now even though she is a member of 2015 as of 2022?

Is there something online thats easy to use where we can put this info in but also works out the reduction in income for both schemes if taken early or can we contact NHS to do this - not sure if they do for the 2015 especially due to the CARE nature but would be so helpful. Understand that it will not be 100% accurate at all.

Any help appreciated

Andy_L

why do you think the calculators are wrong?

Have you seen the approximate reduction factors here https://www.nhsbsa.nhs.uk/employer-hub/technical-guidance/retirement under Actuarially Reduced Early Retirement (ARER)

LightFlare

I emailed the NHS pensions department and requested a pension forecast

It was pretty accurate to my own calculations/estimate

Your partner should be able to get that email from their HR department

It can get slightly complex when you factor in the McCloud remedy for the 1995 section. A lot will depend on your partners age and how long their total service is.

Avro1995

https://forums.moneysavingexpert.com/discussion/comment/81909187#Comment_81909187

Hi there, its this calculator we used

ARER Calculator-20240620-(V9).xlsm

Reason being for the 2015 one we have put in the details to what it says but the annual retirement pension for in 10 years time is less thatn the already accrued amounts for the last few years which makes no sense even with early retirment factors. I can only think we are inputing something wrong but simply cannot see how - or this calculator is no good for 2015?

Moonwolf

https://forums.moneysavingexpert.com/discussion/comment/81909195#Comment_81909195

Are you putting in the current annual pension? That calculator will use your currently accrued pension and won’t make allowances for how the pension might grow. There will be 1/54th of pensionable salary (and the salary might rise) added every year worked, plus the pension already accrued will be revalued by CPI + 1.5%.

I have a spreadsheet I use (used, I’ve already retired) which projects forward. What I usually did/do was work in today’s money. So I assume my pensionable salary doesn’t change so I just add 1/54 of my current salary for each future year I might work and that my pension is revalued by 1.5% (so ignoring CPI growth). I then have a figure I can enter for any year in the future. If she is not at the top of the payscale then add in the incremental growth.

This is obviously only an estimate, if pay rises are very different from CPI the final figures could diverge a lot.