Reader’s Question – What will happen to my NHS pension if I retire early?

Reader's Question:

I am a qualified N.H.S working as a sister in pain management. I am aged 56, would I take reduced pension sum if I retired today? I am in the 1995 section.

My response:

Hi there,

The short answer is that yes you will if you retire before your normal retirement age – which I am assuming is 60 unless you have some form of Special Class dispensation. How the scheme work out your reduced pension is by the scheme applying what is known as an actuarial reduction to the pension you would have received if the date of retirement had been the standard scheme retirement age.

Full details can be found in the NHS Member Scheme Booklet.

But fortunately the NHS pension scheme have made life easier and produced an NHS Pension Calculator which not only shows you what you might get if you retire at your normal retirement age but what you might receive if you retire early.

Fantastic stuff.

But before you decide anything discuss your situation with NHS Pensions (on 0845 421 4000) and read this FREE guide Your options at retirement*.

I hope that helps

Best Wishes

Damien

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paul says:

September 27, 2012 at 10:38 pm

will I still pay NI contributions on my NHS pension if I have more than 30 qualifying years?
1. Damien Fahy says:
  
  September 27, 2012 at 10:47 pm
  
  You pay National Insurance contributions to build up your entitlement to certain state benefits, including the State Pension.
  
  The amount you pay depends on your earnings and only stop once you reach State Pension age. Even if this is after reaching 30 qualifying years.
  
  More info can be found here:
  
  http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/NationalInsurance/IntroductiontoNationalInsurance/DG_190048
amanda stead says:

July 12, 2011 at 11:33 am

hi,
i’m planning on retiring at 55 and have special class status, ive recieved an estimate of pension and lump sum but am wanting to calculate what i will actually have in hand, what taxes will be payable on the lump sum and monthly pension?
1. Damien Fahy says:
  
  July 14, 2011 at 11:39 pm
  
  The lump sum will be tax-free while the monthly pension will be subject to income tax under the usual PAYE method.
  
  If you know the gross pension figure you will receive then enter the figure into this PAYE Income Tax Calculator to see what your net pension will be (i.e. what you take home).
  
  Obviously the calculator uses today’s tax rates which will likely change before you retire. But it gives you a ball park figure.

Comments are closed.

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Reader’s Question – What will happen to my NHS pension if I retire early?