Alternative to nhs pension?

1. Our contributions are just increasing and the benefits remain the same.

Not unexpected given how beneficial the scheme is.

2. The pension age keeps getting pushed back, so we aren't sure when we will be able to enjoy the pension as our jobs are getting more stressful. .due to heavy under staffing etc.

Welcome to the real world. Public sector retirement ages have been lower than private sector and people are living longer. You can still fund that gap if you want to go earlier though. You dont have to retire at scheme age.

I wonder if having a SIPP would be of help.

For additional planning, its certainly an option. Not a replacement though. That would be crazy.

How do you decide? Is an IFA needed? Or one just puts in money into funds like the vanguard lifestrategy 60?

An IFA is not needed. However, there is more to life than VLS60. Like any job, you either DIY or your pay someone to do it. Choice is yours.

Or a private pension is the way forward?

private pension is a term used to cover any type of pension not offered via the employer. Its too generalistic to mean anything.

Hi DocJames,


I too am in the NHS Scheme - 1995 version- it really is one of the best available. I have spent considerable time doing my own research into pensions and saving for my retirement which will be in the next 1-6 years as I can take my nhs pension next year. I'd suggest that you have a read of a few of the threads and a look at a few other sites.


You have to make sure that you don't/ won't get caught by the Life Time Allowance (LTA) to approximate how much you'll be near it you can work an approximation out by calculating your pension as follows-(Figures are for example only)


Salary- 50k
Expected Pension- 25k (50% of salary with full years in)
Tax Free Lump Sum- 75k (3x annual pension)
LTA= 20x annual pension- 500k + TFLS 75K= 575k


Therefore you could save up to another 425k in a SIPP but would have you sailing very close to the LTA.


The advantage of having a SIPP as well as NHS Pension is the option to take this 10 years before the state pension and NHS Pension age.


The main advantages to staying in the NHS Pension are a) the pension is both linked to your earnings- the more your annual salary the greater your pension and it is index linked, b) death in service benefits- twice your annual income as a tax free lump sum to your nominated person or spouse followed by a survivor pension of half that which you would of expected to receive, c) ill health pension should you need to retire before pensionable age.


You could invest in other areas to build a lump sum to enable you to retire at an earlier age than is forecast at present using ISAs etc.


Whatever you do don't give up something that is in fact worth hundreds of thousands of pounds for 9% of your salary! And is fully guaranteed so not at risk if the stock market nose dives just as you plan to use it!


I don't work in A&E but my sister in law does-I do admire your skills and dedication and know from experience how frustrating some of the things we NHS staff have to do! My wife works in the private (health) sector it really isn't much better, different **** but still lots of it!


CRV

I am 41. I took a break after med school to work in the middle East and joined the nhs again.

Docjames wrote: »

Hi,
I am a doctor in A and E,have a pension in the 2008 scheme
Been contributing since 2009.People in general praise the NHS pension and would love to have it. But lately we doctors have been chatting about it and have some serious concerns.
1. Our contributions are just increasing and the benefits remain the same..

In spite of raising contribution rate and retirement age, it is still light years ahead of the most pension schemes in the country. Generally speaking, the annual report for 16/17 say that the standard contribution rate is 34.3% of your salary. The average contribution rate paid by NHS employees is 9.5%. So the cost for the NHS employees are still extremely cheap, especially with Ill Health Retirement, purchasing of Additional Pension, Lump sum on Death and pensions for OH and so on.