Alternative to nhs pension?

JoeCrystal · 7 October 2017 at 9:08AM

Docjames wrote: »

I appreciate the benefits of the pension. The main issueI have which most of my colleagues agree on is that the pension age which was 60, then 65 and now 68..At this rate it will be pushed to 75 as HMG keeps changing the goalposts. .
That's a concern. .
James

You can still access the pension at 55 so that's fine although the pension is reduced by 40%. You do have option to pay additional contributions to buy out the reduction that would apply if the member retires before their Normal Pension Age at the maximum of 3 years earlier. So really, it is up to your colleagues to find a way to make up the gap between when they want to retire and when their pensions kicks in and they still get their state pension at SPA as well.

Docjames · 7 October 2017 at 9:11AM

Sorry. .used my partners phone to reply and didn't realise it was in his login. .
I am 41..female. .consultant A and E. .

Docjames · 7 October 2017 at 9:13AM

At 55, the pension which is to be taken at 65 decreases by 76 percent. .

JoeCrystal · 7 October 2017 at 9:20AM

Docjames wrote: »

At 55, the pension which is to be taken at 65 decreases by 76 percent. .

Really? Just had a quick look at the NHSBA leaflet issued Link here and it say that your pension is reduced by if you choose to retire early. The pension is reduced by the percentage below:

6% if retiring one year earlier to 47% if retiring 13 years earlier. So assuming your SPA is 68 then retiring at 55 would reduce your pension reduced by 47%? I am sure people who are lot more familiar with NHS pension will be happy to correct us.

Either way, you do have lot of options and it really depend on how much retirement income you need and work backward from it. It could be that you may be able to retire at 55 living on the reduced NHS pension providing you put enough aside to cover the shortfall if needed until your state pension kicked in.

crv1963 · 7 October 2017 at 9:52AM

JoeCrystal wrote: »

Either way, you do have lot of options and it really depend on how much retirement income you need and work backward from it. It could be that you may be able to retire at 55 living on the reduced NHS pension providing you put enough aside to cover the shortfall if needed until your state pension kicked in.

If I were you Dr James I'd speak to the Trust Pensions Officer and get a figure for how much of your LTA you will use via the pension pot and if there is some slack I'd look at starting a SIPP, which fund depends on your attitude to risk.

Then I'd look at ISAs, and try to build a pot of money/ investments that I could use to draw upon to bridge the gap between me "retiring" and my deferred NHS Pension starting then my State Pension starting.

If you are not opposed to locum work per se that could be an option once you leave on early "retirement".

My personal situation is I am retiring at 55 (MHO), then agency for a few years (2-5), put most of that income into a SIPP and ISAs so that my wife and I can completely stop work at me age 60 and her age 57. It may be from my figures that I have to work until I'm 62 but it is still 5 years before my state pension.

Look at the thread - What is your number on here it gives a basis for you to work out what level of income you are happy with once you stop work.

CRV

stoozie1 · 7 October 2017 at 10:41AM

Thanks for giving your age, that helps.

I think you have some membership righrs accrued in the 2008 scheme but are now accruing benefits in the 2015 scheme.

This changes the advice given upthread with regards to accrual rates and death in service benefits.

Have you checked your most recent TRS? This is a good place to start and you should now have 2 years benefits in the new scheme displayed.

For what its worth, my OH has NHS pension in both the 1995 and 2015 schemes, and to enable early retirement, to add flexibility and to improve the death in service benefits, we both also have SIPPs, which would be a possible avenue to explore.

All the best!

Docjames · 7 October 2017 at 11:10AM

Hi,
That's the issue. .stoozie1, to be honest I have an stocks and shares isa. I had shares in provident financial since 3 years. ..After the crash in the price, my confidence in investing has really slumped.
So looking at Sipps though prudent being a higher band tax payer is a problem as I am unsure what to invest in. ..
I looked at some multi asset funds and some platforms like HL and A J Bell but this mindset of "what if I lose more money "..keeps coming up.

JoeCrystal · 7 October 2017 at 11:18AM

Docjames wrote: »

Hi,
That's the issue. .stoozie1, to be honest I have an stocks and shares isa. I had shares in provident financial since 3 years. ..After the crash in the price, my confidence in investing has really slumped.
So looking at Sipps though prudent being a higher band tax payer is a problem as I am unsure what to invest in. ..
I looked at some multi asset funds and some platforms like HL and A J Bell but this mindset of "what if I lose more money "..keeps coming up.

If you are investing for decades long term then rather thinking losing money, you should be seeing it as an opportunity to buy units even more cheaper. If you don't have any confidence in investing then you might as well see an IFA to give yourself a better chance in getting higher return. .

crv1963 · 7 October 2017 at 11:28AM

Docjames wrote: »

Hi,

I looked at some multi asset funds and some platforms like HL and A J Bell but this mindset of "what if I lose more money "..keeps coming up.

But if you have in mind a date/ age to retire then from what I have read on this site is you can plan and know that eventually markets do recover so stay invested for the long term 10 yrs+.

If the market crashes then unless it's on the day that you have issued instructions to sell you simply can delay the retirement until your funds reach a level that you are happy with?

So for arguments sake you decide I'm retiring age 55. (You invest and the markets go up and down but you keep putting money in sometimes you get more (when it's down) and sometimes less (when it's up) but as long as it's overall line is upwards you'll be okay.) then you know that your investment time in the market is 14 years, so you can start transferring funds to less risky funds a few years before your planned retirement date.

If you spread your risk by having cash, S&S and bonds you can do all you can to minimise loss.

stoozie1 · 7 October 2017 at 11:53AM

I agree with Joe and CRV. However if you feel too bitten by the past to invest, could you consider purchasing NHS additional pension of £6500 annually (this will cost you £58000 if you were able to do it as a lumpsum, or more if you spread it out monthly over several years.)

You could then use all/part of the £6500 as the amount which will be reduced when you take early retirement from the NHS scheme?

Alternative to nhs pension?

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