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  • FIRST POST
    • Adamc
    • By Adamc 6th Jan 18, 2:06 PM
    • 58Posts
    • 4Thanks
    Adamc
    NHS Pension Confusion
    • #1
    • 6th Jan 18, 2:06 PM
    NHS Pension Confusion 6th Jan 18 at 2:06 PM
    Hi all

    I'm relatively young guy working in the NHS and I am in the latest pension scheme. The only problem is I don't understand it.

    Could anyone advise me on how it works?
    Whether it's worth considering other pension schemes?

    I'm ashamed to say, I'm very clueless regarding the 300-400 that is being deducted from my income each month.

    Thanks for any advice.
Page 4
    • stoozie1
    • By stoozie1 21st Feb 18, 1:54 PM
    • 549 Posts
    • 485 Thanks
    stoozie1
    Good point, it may well do.

    Our life insurance for my OH was higher tgan normal due to preexisting conditions and he isn't a high enough earner to have the impact you discussed above, so definitely a case of do your own research

    But 2 x annual salary plus 6m full pay plus a lifetime pension for spouse and dependants under 23 would be hard to purchase IMO.
    Save 12 k in 2018 challenge member #79
    Target 2018: 24k Jan 2018- 560 April 2670
    • andy001
    • By andy001 22nd Feb 18, 6:15 PM
    • 42 Posts
    • 17 Thanks
    andy001
    stoozie1..thanks
    I thought it was only 2 x annual salary .. was not aware of plus 6m full pay !
    Family income protection policy can pay this for merely 30 to 40 p.m..
    IFA on MSE forum may be able to correct me if it's wrong assumption
    Thanks
    Andy
    • edrushuk
    • By edrushuk 2nd Mar 18, 2:39 PM
    • 255 Posts
    • 66 Thanks
    edrushuk
    Thanks for all the work on this, it has been very useful. I have just started in the NHS at the age of 48 (now 50). I have addition question. I am currently a band 6 if I was able to contribute another 50 into my pension pot how would that work out? I intend to spend the rest of my working career in the NHS so would like to get the most out of the pension as I only have 17 years left. Also if I transferred 20K ( other pension pots) would that be a good thing. Thank you again.
    • mollycat
    • By mollycat 2nd Mar 18, 7:17 PM
    • 1,042 Posts
    • 2,067 Thanks
    mollycat
    Thanks for all the work on this, it has been very useful. I have just started in the NHS at the age of 48 (now 50). I have addition question. I am currently a band 6 if I was able to contribute another 50 into my pension pot how would that work out? I intend to spend the rest of my working career in the NHS so would like to get the most out of the pension as I only have 17 years left. Also if I transferred 20K ( other pension pots) would that be a good thing. Thank you again.
    Originally posted by edrushuk
    Its not a "pot".

    Read the factsheet to get an understanding of your pension.
    • hyubh
    • By hyubh 2nd Mar 18, 9:12 PM
    • 2,116 Posts
    • 1,625 Thanks
    hyubh
    Thanks for all the work on this, it has been very useful. I have just started in the NHS at the age of 48 (now 50).
    Originally posted by edrushuk
    You didn't mention that on your own thread. Since you've been in the scheme for over 12 months, transferring in won't be possible any more. However, purchasing additional DB pension outside of that still will be.

    PS - mollycat's rather brusque interjection was because when a pensions geek speaks of a 'pot', they mean the value of a DC pension, i.e. an investment total that (on retirement) you either draw from directly, or purchase an annuity with. The 'pot' you allude to with your NHS pension is in contrast your current CARE pension accrual, i.e. what you will be due to be paid, each year, on retirement.
    • mollycat
    • By mollycat 3rd Mar 18, 9:34 AM
    • 1,042 Posts
    • 2,067 Thanks
    mollycat
    You didn't mention that on your own thread. Since you've been in the scheme for over 12 months, transferring in won't be possible any more. However, purchasing additional DB pension outside of that still will be.

    PS - mollycat's rather brusque interjection was because when a pensions geek speaks of a 'pot', they mean the value of a DC pension, i.e. an investment total that (on retirement) you either draw from directly, or purchase an annuity with. The 'pot' you allude to with your NHS pension is in contrast your current CARE pension accrual, i.e. what you will be due to be paid, each year, on retirement.
    Originally posted by hyubh
    Whats "brusque" about it?

    Dont you know that the written word can be construed in different ways and may come across differently than had it been spoken.

    There was no brusqueness intended.

    The poster demonstates a poor understanding, (again no malice intended); the easy to understand NHS Pension factsheets, which include FAQs and example scenarios are the absolute best way to understand all sections.

    "Geek" or no geek, its not a "pot"......that was the misconception earlier in the thread that required a fair few posts to sort out; hence why I interjected.
    • TARDIS
    • By TARDIS 3rd Mar 18, 10:26 AM
    • 109 Posts
    • 79 Thanks
    TARDIS
    Certainly not an expert, but my understanding is that whilst opted out, a member forfeits Death in Service benefits.
    Originally posted by stoozie1
    I believe it's now not uncommon for members nearing LTA to opt out for 11 months each year with minimal effects on death in service benefits: https://www.nhsbsa.nhs.uk/sites/default/files/2017-04/Survivors%20Guide%20%28V5%29%2004.2017.pdf

    Some NHS employers will even give opted out members the employers contributions, but only if they're permanently opting out, not doing the Hokey Cokey.
    • edrushuk
    • By edrushuk 4th Mar 18, 5:30 PM
    • 255 Posts
    • 66 Thanks
    edrushuk
    Thanks all, life is far too short to take it personal and Mollycat is correct I have a poor understanding of my pension, that is the reason for all the questions. I will go and check out those factsheets
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