NHS Pension Scheme - What's it Like?

scottp_2

Hi,

My Girlfriend has just started work at a NHS hospital. She has just signed the contract to pay 6% of her Salary per month into the NHS Pension Scheme. As far as I can tell from what she has been told, it is a Final Salary scheme right?
She plans to be with the NHS for the rest of her career (Shes 16 at the moment, training to be a specialist Nurse but is looking into becoming a Doctor later on, following the career path of quite a few of her colleagues who are very successful!), which means she is probably going to be working for about 45 years or so.
From my knowledge of pensions, this will provide her with a massive pension when she retires (I know its a long way off, but got to think about it!).
Any information for her will be greatly appreciated, as I am trying to show her just how important it is and how that small amount per month could make a huge difference later on!

Thanks!

dunstonh

From my knowledge of pensions, this will provide her with a massive pension when she retires

Not massive. 40 years service will provide hald the final pensionable salary (with a bit of averaging).

Its the benefits vs cost which is the massive benefit. 6% of the contribution (which is actually less in real terms) is tiny compared to the level of benefits achieved. It would probably cost around 15-20% if she was to buy the same level of benefits privatly.

It is a gold plated pension scheme which any of us here would jump at if we had the chance. Not joining would be the same as throwing away bucket loads of money each month.