nhs pension calculation help

happilass

Hi,
I will have approx. 25 years paying into the NHS pension scheme at the begining of next year. By then I will be 55 and am able to retire on full pension. I have asked at our finance dept. for a projection for my pension ie how much I will be getting but they are taking ages to get back to me with this. I have been badgering them but to no avail! I am wondering if there is a way that I can roughly work out how much I should get ie. lump sum and annual pension in the mean time as I have a number of decisions to make before I can decide if I can afford to retire or not. i am not brilliant with figures so if there is a simple way to calculate this I would be grateful. I know that pensions calculations are not "simple" but just a rough estimate would be useful for now. I am aware that this will only be a rough guide and I will not make any big decisions until I get the full projection from finance.
Thanks in advance,
Happi

fabwitch_2

You can email the nhs pension agency direct and ask them for an estimate. I did this a couple of months ago, and got full estmate in the post.

firesidemaid

go to the nhs pensions website - there is a calculator where you can work this out yourself.

the booklet is also online, which has the table which shows you the % deductions at 55 and for each year up to 60 for your lump sum and pension - or are you one of the special classes where 55 is your 'normal' retirement age.

very basically you will get 25/80 of your current salary (?salary that you have been on for a whole year - check this out, working a few extra months may make a bigger difference). plus 3 x this figure as a lump sum - taking into account the above. you will have to pay tax on your pension if it is above your personal allowance (not on the lump sum).

happilass

Hi,
thank you so much fabwitch and fireside maid for your help.Yes, I am one of the special classes and therfore can go on full pension at 55 YAY
This has helped a lot thanks.
Happi (now even happier!)

john.xs

please can anyone explain what you mean by going on full pension. i too have the special class meaning i could retire at 55.unfortunately i have still 12 yrs graft to do. from time to time i have considered doing something else but the thought of early retirement spurs me on.(i plan to continue working but less hours and something different from nhs) are the benefits of staying put that good?

john.xs

if i decided to leave nhs now having 20+ yrs service in.when could i get a pensionif i did a totally different job. would it be when im 65 or 55.i currently work in mental health and have special officer status?

happilass

Hi,
what I mean by going on full pension is me leaving when I am 55 and having my pension then ie. having 25 years in therfore getting 25/80 /annum plus 3x 25/80 lump sum. In my case I work 30 hrs/ week and am on £31+000/year pro rata therfore I will get approx. £830/month before tax, but excluding superanuation as I won't be paying any then. My lump sum will be about £30000, or just less, on my calculations.
Like you I am a special class employee, nurse, and therfore can go at 55 on full pension. This does not mean that I will have the same as someone who works until they are 60 because, obviously, they will have paid in for longer than me. It means that I can take advantage of having my pension at 55 for the years I have paid in. I am fortunate to be able to drop my pay down to that as I have other financial resources, thank God!
Hope this helps,
Happi

firesidemaid

i did a quick sum and made it £654 a month before tax using the 31 hours as an 81% pro-rata - is that correct?

have you done more than 31 hours at any time in the last 3 years? are you including superannuated out-of-ours payments in your wages too? are you at the top of your scale?

happilass

Hi, yes fm you are right it will be £677/annum. I told you that my maths was rubbish! However, it dosen't make a huge difference to my plans overall. Thanks for you help. Yes, I am at the top of my payscale and I have worked 30 hours for the last 3 years. Ithink the best 3 of the last 5 now counts though through the new pension scheme. However, 30 hours still applies to me.
thanks again,
Happi (though less so now!!)