Im a senior supervisor for a NHS Trust in the uk. Many of my team haven't a clue about, well about anything TBH and although I'm not the sharpest pen in the pencil pot, I have been really struggling to understand how NHS pensions work. As a supervisor, I'm the first point of contact for many of my staff and it's embarrassing that I can't help them due to the lack of management training I get, or don't. But thanks to your videos, I am a lot more comfortable and confident in what i can advise my team . Thank you.
I tried looking at my TRS and it makes absolutely no sense to anyone except for people who are involved in it hence why I went hunting for explanations on why I'm actually paying anything into my pension. Felt like it was just going into a black hole! There are lots of pension videos from nhsbsa but they don't really explain anything at all, just silly animations and pop up text. This has been a brilliantly clear explanation of how it works. Thank you.
Thank you Ewan, these comments mean the world and so thanks again for taking the time in writing a comment. I am pleased to hear the video was helpful :)
Thank you so much for this. I have worked for the NHS for 20 years and have struggled to work out the calculations from the statements provided but this has explained things very clearly.
Wow, great timing. I'm literally getting ready to retire at the age of 63 (64 in sept) as I'm worn out and want to enjoy some time for me. I've been talking to my brother who retired a few years ago, but you've explained it perfectly. Will make my phone call to H.R easier tomorrow 😂 Thankyou
Thank you for this video. I have been paying NHS Pension for about 12 years but it is only few months ago that I really understand the importance and value of NHS PENSION. Since then I have been doing more research and now I educate people on my RUclips channel about planning for their future. The future is not as far as many people think.
I think this is the first video that actually emphasizes that the employer contribution has no bearing on the amount of pension that you will receive. Well done👍
You should be able to see by these questions how badly the NHS explain anything. I cannot get a soul to actually help. So thank you for your videos....
Hi Kozan, Thank you for such helpful information. I am 53 years old was working within the NHS 1995 scheme from 1994 to 2008 then I left the NHS and am currently working as a Nurse in Canada. Could you provide some insight on how I can claim a lump sum as I heard it can be claimed from 50 years old. Is that correct?
Lots of help as a NHS worker who is unsure about being in the NHS pension. Thanks very much Kozan and financial madness for this help! Much appreciated!
Making money should be a routine A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k
As with an my big financial decision,it’s important to keep your guard’s up for economic risks.However,smart planning,time management and seeking advise from a financial adviser can help keep you and your money safe.
financial security through diligent saving and investing should be on top of everyone's priority ASAP. I really need some guidance can this Fin coach guide me in this unstable times and why do you trust them much?
Thank you. I have really understood more from this video. One question? Are we able to nominate a beneficiary of a will to the pension pot amount when a pensioner dies?
If you are startibg your career in the NHS ,please do yourself a favour and join the pension. In your 20s it may feel like wasting money but it is anything but.
Hi Kozan, understood and great video, one quick question. At the beginning you stated that the NHS contributes 20.6% into the scheme however when doing your chart we accounted for the CPI and 1.5% and 1/54 but I didnt see you include the 20.6% contribution form the employer. Was that intentional? Am I missing something? Thanks
Have you ever modelled salary sacrifice schemes effect on the NHS pension as its very common? Wondering about how to compare jam now with tax savings on car leasing vs jam tomorrow with pension losses
NHS Pension can be confusing to understand. Let me know if you have any more questions on the matter? Check out my other video, on How To Contribute Extra to the NHS Pension: ruclips.net/video/avD2cYOyZQU/видео.html
Hi there. Not explicitly. If you are working in London, typically your salary will be higher, than most other areas (due to the higher cost of living) and therefore the amount from the Build Up rate will be higher and therefore more will be added to your Pension Benefits.
Fantastic! I just sat through an hour long webinar on pensions organised by my LMC and was none the wiser. 10 mins watching you and every word was useful and clearly explained. Thanks!
If I retire at 60 I will have part 95 and 2015 pension pots. My question is for the 95 pension where it is the best of the last 3 years, does this apply to the last 3 years up until 2015 when it changed to the new scheme or it is the best of the last 3 years at point of retiring?
Hi Faiz, thank you for your kind comments! If only everyone shared your enthusiasm when it comes to Pensions 😂. If you would like me to make another video on the NHS Pensions (or anything else Personal Finance related), feel free to let me know, I am always open for suggestions :).
While the video was excellent and something which many of us have sought for , I feel I would be even more interested in the following . 1. How does your family get affected and compensated in case of your death while in harness . 2. What happens to your pension after your death post retirement . How to calculate how much the spouse will get . 3. Do you need to nominate your wife for the pension or is it automatic . 4. Is there any scheme better than the NHS pension currently in the UK . 5 . Are there any advantages or disadvantages of starting late and how much actually we may lose by the loss of compounding . 6. Is a life insurance intrinsic to the NHS pension and how much is it . 7. What is the earliest age at which you may voluntarily retire and still be able to avail some part of the pension ( 2015) . I don't expect you to answer all of these but just some suggestions of what people may seek to know . And again , thank you very much for a stellar video .
This video is very helpful! I am currently on the 2015 NHS Pension Scheme. A lot of people have been telling me to opt out of the pension scheme as it is a contribution scheme and the amount of money you put into the pot is adjusted with the market and the money you receive when you retire can be much lower compared to what you actually put in. You clarified that the NHS Pension Scheme which works on the defined benefit scheme. I have a question about the re-build rate and pension re-evaluated section (time 9:24). You discuss what the annual pension entitlement is and base it off the re-build rate and pension re-evaluated rate, however, what about the 9% contribution by the employee and 21% contribution by the employer? Where's all of this money gone to?
Hi Parisah, Thanks for the question and I can see from another comment you already found the answer in my other NHS Pension Video. I am just posting the link here, just in case someone else has the same question and would like it answered too :) ruclips.net/video/jiJNecxa7AA/видео.html&lc=UgxNgduBDdl4BFP3xE94AaABAg
Last week I was shocked to find that my deferred pension is not subject to any CPI uprate for the years between when I left the NHS (in 1990) and last week when I finally reached my retirement age! I left the NHS as a Band D (Enrolled Nurse) with a few days short of 8 years pensionable service and the pension I receive, as of 2 days ago, is based on my final salary back in 1990 ... and of course that's far below what is minimum wage today. So almost 8 years pension gives me the grand total of £183.99 per month. I think it's criminal that they pull a stroke like that when they tell you it's an "index linked pension" that you're paying into.
Hi Kozan, Thankyou for taking the time to reply to my question I really appreciate it. I actually managed to speak to somebody a few days ago from NHS pensions who said that yes next April my 1995 pension would close but I wouldn’t loose the benefits I had accumulated so far and from 1April 2022 the rest of of my pension contributions would go into 2015 pension scheme. She said I would I technically have 2 NHS pensions the 1995 one from 2005 (when I started working for NHS) till 1/4/22 and then the 2015 until I retire. I understand the 1995 will be closed so no more contributions can be added to it but wondered if I don’t draw it until I retire in 8 years time could its value still increase or possibly decrease. Your videos are really useful and easy for everybody to understand. Thanks again for making them, I look forward to watching your Q & A on NHS pensions. Karen
Hi Karen, Yes, this is correct. Whenever, one person transfers from one scheme to another, the two/three schemes do not merge together. The legacy schemes still exist the only difference is now you are contributing to a new scheme. I will be sure to make this more clear in my Q&A video. With regards to your 8 years question (it is a really good question), the value of these schemes will not change. For the 1995 scheme your Final Salary is based on your salary during the last 3 years of your membership. Reading the 1995 Booklet (link below, slide 5), your final salary is adjusted to keep up with the cost of living. So you should expect your 1995 final salary to increase at the rate of inflation. www.nhsbsa.nhs.uk/sites/default/files/2018-04/Key%20Notes-1995%20Section%20Estimates%20%28web%29-20180409-%28V2%29.pdf Let me know if you want any other questions answered :)
What about the lump sum on retirement ? It would be useful to show this as comparison as the 1995 section seems to have a much smaller annual pension vs the 2015 section, however the lump sum would change this comparison.
NHS pensions are subject to an annual increase which is based upon the consumer price index (CPI) as laid down by HM Treasury every year. The increase will be applied to your pension at the beginning of April in the new tax year.
OK I'm 60 and lived in France for 20 years. In that time I didn't pay into a pension scheme. I started working for the NHS in 2021. I decided to add a top up to my NHS pension contributions by paying in the maximum allowed, which is £6500 and may do the same this year. Is that a good idea?
I do find it confusing with NHS pension and trying to find out how do I know what is my total pension doing now. I have looks at TRS and is that the way to look at? Or is there way to see? Thanks again
Good question. So your Total Rewards Statement should show you how much of your Pension is currently worth. But I understand there is a separate service you can request if you want to get a prediction of how much your pension will be. Follow this link: www.nhsbsa.nhs.uk/member-hub/getting-estimate-your-pension I hope this helps. Let me know if you have any more questions. Thanks
Good information. I worked in UK 5 years, I am not UK citizenship, I am not sure if I have right for a pension if a live in a foreign country when I will retire
Thank you. I am glad you found the video useful! Yes, that is something, I should have mentioned in video (Ha), as I know this is a concern for many NHS workers. Yes unfortunately, if you do plan to move abroad, there is no way to transfer your pension to another "overseas" pension scheme. However, it does seem you can transfer the money from the UK to your new foreign residency using oversea bank payments. (Usually, oversea payments do come with charges). More info here: nhsbsa-live.powerappsportals.com/knowledgebase/article/KA-04106/en-us However, I would check the rules for the country you plan to move too, as I know they too can impose restrictions. If you find, that Pensions still aren't the right option because of this, I would strongly encourage you find another means of saving your retirement. Check out SIPPs (they are another type of Pension, and you can find ones that allow you to transfer when you move abroad), or perhaps, consider putting some money away in a ISA, and you can close your ISA before you move away. I hope this helps :)
@@FinancialMadness Thank you very much for the information. I left UK in 2005, so I don´t know if I have any kind of right. I will check it, Thanks again
thank you for your valuable videos. I wanted to ask if we could have a break from contribution to the scheme ( especially at the beginning of NHS work? if yes how long could it be to be able to come back or start our contribution again?
Hi there, Thanks for the kind comment, I am glad you found it useful. And yes you can Opt Out and In at any point. There is a really helpful FAQ page provided by the NHS which should answer most of your questions. Let me know if anything doesn't make sense :) www.nhsbsa.nhs.uk/sites/default/files/2017-03/Member%20Opting%20Out%20factsheet%20%2802.2017%29%20%28V5%29.pdf
Thanks Ed, I am glad you found this helpful. Do you mean a CETV? You should be able to access your TRS using a gov.uk verify or via ESR if your employer has given you access to this.
Hi. If your working past your 1995 retirement age and are moved into the 2015 scheme in April 2022. Which years salary are used to work out your 1995 allowance.
Hi Paul, Great question. The 1995 Scheme will still be caluclated using your Final Salary even when moved to the 2015 Scheme. As long as you don't take a break in service for more than 5 years. As per the NHS Website: "_You will not lose your final salary link if you have one You’ll also keep your final salary link for your 1995/2008 Scheme benefits, as long as you don't have a break in membership of more than 5 years. This means when it’s time to pay your 1995/2008 benefits, they’ll be calculated using your final salary at retirement. If you've built up practitioner benefits these will be protected at retirement using arrangements equivalent to a final salary link, as long as you don't have a break in membership of more than 5 years._ " www.nhsbsa.nhs.uk/changes-public-service-pensions/your-nhs-pension-after-1-april-2022
The issue a lot of staff who are on the 1995 scheme are having relates to them being switched onto the 2015 scheme and then the McCloud judgement where they will be able to count the years from 2015 to 2022 as being 1995 scheme years. The problem is that any years on the CARE scheme aren't counted as pensionable years under the 1995 scheme so for example my wife's years of Reckonable Service is 18, in 2015 (or 25 after McCloud 2022). So if she works on to 2029 and retires at 60 her 1995 scheme pension isn't benefiting those years as multiplication years and the pension generated from 2022 to 2029 will be CARE scheme pension which she won't get to 67 (68 if government gets changes through). Also, staff trying to boost their salary in final three years by doing a year of nights are being told conflicting messages as to what a year means. The book says 365 days but is this 12 rolling months, a financial year or January to December?
I joined nhs in 1978 took my lump sum in 1995 . joined again in 1998 and am still employed ,will I still collect my monthly sum when I retire in Oct 2022 .Thanks glenda
I worked in the nhs and came out at 60yrs old. As mentioned in my previous comment, I am hoping it is all safely held for me. You mentioned you should get a yearly statement? I have never once had statement come to me unless I chase one up..by post, it eventually comes. Am I missing something, are they sent out automatically? Maybe it’s because I left the nhs. I am almost64. Thank you
Hi...thanks for sharing your knowledge on pension. I'm a Registered Nurse planning on immigrating to the to join the NHS in a couple of months. My question to you... I'm 55 years old, if I decide to work between 3-5 years with the NHS, can I opt to retire at 60 years? Would I received a pension? I know it would just be minimum working only three to five years. My salary offer is £28,407/annually. Thanks!
The NHS pension contribution is taken from your salary before tax. This means that the contribution is calculated based on your gross salary before any tax deductions are made. But remember, this is a type of Defined Benefits Scheme, the money you get from the scheme is dependent on how many years you contribute, average salary, and the revaluation rate. Yours and the employers contributions are helping to pay for the current pensioners of the scheme. Hope that makes sense
I have worked in the NHS since the age of 16 now 36 , so have about half of my pension in the 1995 scheme and half in the 2015. My question is regarding enhancements to my pay and how this will affect my pension. For example I receive stand by payment £325 for on call and a recruitment and retention payment of £224 monthly basis ,both of which are pensionable pay. It is my understanding that the 2015 is career average , so does this mean that my extra contribution are not going to ultimately increase what my pension salary will be? Any help would be much appreciated.
Hi there, Thanks for reaching out. So any pensionable pay is taken into the 2015 career average scheme, so these extra payments will help increase your pension salary. And should be taken into account when calculating your Career Average. I hope this helps
Hi Kozan, really helpful video! What happens if you would like to leave the NHS early (say 55 years old) but have had a 30+ year career in the NHS and do not need to access to your NHS pension until state retirement age (68 years old). Would this affect your entitlement? This would be based on the 2015 scheme. Thank you!
Hi A Taylor. Great to hear that you found the video helpful! As for your NHS pension, it's important to note that choosing to do this won't have any negative impact on your current 2015 pension benefits. The only thing that would change is that your benefits would no longer increase (because you are no longer working, however, that your pension should still be adjusted in line with inflation). So don't worry about any penalties - you're good to go!
Thank you for the video. I have recently realized the changes and now understand that the 1995/2008 benefits remain. I'm 51. Started in 2001, left 2015 and returned 2021 at a lower banding and therefore salary. Will my 1995/2008 remain with the salary i had at that time (it was the highest in 2015 when I left). I really struggle with the TRS to access my own information!
Hi Tilly, Thank you for the comment and kind words. The older pensions do take into account your salary at the time of your pension. But because you left for a significant period I have a feeling there might be an exemption. I am currently away on leave and can check when I get back over the weekend.
Hi Tilly, So reading the NHS Documentation here: www.nhsbsa.nhs.uk/sites/default/files/2021-08/NHSPensions_Glossary_of_commonly_used_terms_V2.0_202108.pdf It says _"If you’re a deferred member, your benefits will be based on your scheme membership and the best of your last 3 years’ pensionable pay or reckonable pay when you left NHS service or stopped contributing to the NHS Pension Scheme. The legacy 1995/2008 Scheme closed to new members with effect from 1 April 2015. All members who are currently in the 1995/2008 Scheme will be moved into the 2015 Scheme on 1 April 2022. You won’t lose any benefits you earned under the legacy scheme and you’ll keep your final salary link for benefits earned before 1 April 2022, as long as you haven’t had a break in service of more than 5 years between 1 April 2012 and 31 March 2022."_ As you have had a break in service for more than 5 years, that means your Legacy Pension will be based on your salary in 2001.
Hi, I'm actually new in the UK and I'm contemplating if I should opt out from the pension scheme for the meantime until I adjusted with my finances and to enroll back. Is it true that when you opted out of the pension scheme, the tax will increase? Hope you can enlighten me with this. Thanks. Btw, your video helped me well to understand its benefit. Thanks.
Hi Financial madness , if I retired early ie 62 . I would not need my pension until normal pension age 67 ahhhh. So what would happen to my pension ie any rise over those years?
Hi John, yes great question, if you stopped working for the NHS, from that period until you claim your pension will still increase by the rate of inflation (i.e. Revaluation Rate)
Who can I call to give me advice... The nhsbsa? They don't seem to want to help. Thinking of taking a lump sum... And rejoining pension by going back to work is it after 24 hours? I'm in 1995 scheme AND 2015. Worked for NHS from 2002. 😢 Nobody to help me
Hi Anne, I am happy to offer some guidance. Please note however that I am not a Financial Advisor nor do I work for NHS Pensions. But if you are struggling to find help, feel free to email your questions to me at financialmadness1@gmail.com and I can take a look :)
If we opt out of pension after 1 year, Do we get the amount which NHS also contributed to it? ( for eg: The salary is 2000 pounds. I have contributed 200 pounds each month and NHS contributed 400 ( 20% of 2000) each month. If I opt out after 1 year, do I get 7200 pounds? (200 * 12 + 400 *12)
Thank you, for so much help. My little brain holds a certain amount, then, I lose my concentration. Kind of why I left the nhs..burn out! Question, if possible please respond, I left nhs when I was 60, I am coming up to 64, I have some in the 2008 and some in 2015. I am assuming it is all just frozen and held for me..safely! I will take the 2008 at 65 and 2015 at 66yrs 6 months, my state pension age. Is any of it going up in value anywhere..whilst it’s being held for me?! Or did it all literally just freeze. Thank you.
Good video... Pls explain my annual salary before tax is 9000 per annum... Pls calculate how much will be mine and how much will be NHS Contribution per month from this gross salary ?
Is there any kind of insurance in nhs pension ? For example I work for NHS 5 years and I'm part of the nhs pension. And For example I had accident or I'm sick and I can't work for NHS. I'm band 7 is there any protection in that side ?
There doesn't seem to me be any insurance cover 'per-se' on NHS pension if you become temporarily out of action due to a sickness or an accident. They do allow for early access to your pension if you do become permanently incapable to carry out your duties. www.nhsbsa.nhs.uk/sites/default/files/2019-11/Ill%20health-AW33E-20190717-%28V18%29%20digital.pdf There is a separate scheme called the 'Injury Benefits Scheme' which pays benefits to temporary or permanent loss of earnings, however this seems to cover incidents that are related to work only. So accidents outside of work will not be covered. Also, do check if you are covered under the scheme, there is a helpful section on the websites FAQs. www.nhsbsa.nhs.uk/about-injury-benefits-scheme For anything else, you may have to go privately to obtain full coverage, but it is worth speaking with your Employer directly to check this.
Hi Mr M, Thank you for the comment, however I am struggling to understand your question. Do you want to withdraw your NHS Pension in one Lump Sum at the age of 60 and drawdown from another Pension Fund for your retirement years??? If so, then yes. You can do this, however I would look into the Tax Implications of doing this, as this may not be the most tax efficient way to withdraw on your Pension.
Nice video Can I ask in my case I want to opt out because i want to leave the uk.I have joined d nhs pension scheme more than a year ago ,will my refund include my employer‘s contribution as well or is it just my own contribution.
Yes. Even if you are not an active member of the 1995 Scheme, the pension benefits are still protected against inflation. You can find more information here www.bma.org.uk/pay-and-contracts/pensions/increases-to-your-pension/inflationary-increases-to-your-nhs-pension#:~:text=If%20you%20are%20an%20active,with%20pensions%20increases%20plus%201.5%25.
Really helpful video, thank you! I’m looking into additional voluntary contributions to boost my NHS pension. Online help is very limited & online only really directs me Additional Pension. Is this the same thing??
Glad it was helpful! Additional Pension is just one possible way you can contribute more to your NHS Pension. I created a video on what this type means and other common options that are also available. ruclips.net/video/avD2cYOyZQU/видео.html I hope this helps :)
Really helpful, great video. Up late at night thinking about the future but glad I stumbled upon this 😄. I am wondering if you think it is work opening a SIPS as well as paying into the nhs pension. I hear it can act as a bridge if you wish to retire earlier than the standard retirement age. 68 seems too long for me!
Hi Andy, I am glad you found this video helpful after what I can only imagine must have been some serious Personal Finance RUclips Rabbit Hole! 😂 You have quiet a few options available to you, if the retirement age of 68 is of concern to you then a SIPP is a good way to combat that, it can act as a top-up and has an earlier retirement age of 55 (soon to be 57). Alternatively, you can think of investing your money through an ISA. Unlike the Pensions you don't get tax rebates when you contribute, but you don't have to worry about paying any taxes at withdrawal, and there are no age restrictions too. I made a video earlier where I toss up the pros and cons of contributing more to Pensions or ISAs, so might be worth checking out: ruclips.net/video/e3ckUUMBxmU/видео.html Also, the next video I am working on is the concept of how contributing too much to your pension can actually be a bad thing. Might be helpful for you to check that out once its released on Monday :)
Thank you so much for taking your time to make this video .. it is really helpful.. one small Question. What if some one dies far before reaching the retirement age ?
Hi Dekey, Apologies for the delayed reply. I am glad you found the video useful. If you become severely ill, you can gain access early to your pension, without any penalty. In the event of you passing away before retirement ages then yes, your Spouse/ Civil Partner or nominated Partner can receive a lump sum on death and they will later receive a proportion of your final salary until they pass away.
Hi, thank you for the question. If the employee dies before reaching retirement or within 5 years of retirement and the spouse is present without any dependant children, then the spouse may be entitled to a lump sum cash. If the employee dies whilst in retirement, the spouse will receive the employees final salary pension, but at a reduced rate. I hope this helps Thanks
Much informative..In ur example table u showed pension revaluated and rebuild rate.accoeding to ur example one who only get £14000 p.a..Where the contributions going? can u pls explain with our contribution and nhs contribution with an example table.if my p.a £25000 and contribution 9.3% monthly
Hi Sona S, thank you for your question. The NHS pensions work slightly differently than most workplace pensions. It is on something called a "Defined Benefits Scheme" which is a scheme that allows you to get a final salary for life until you die. (This is different to the common "Defined Contribution Scheme', which gives you a pension based on how much you and the employer have contributed into your individual Pension Pot and pension for life is not guaranteed). Under the NHS Defined Benefits Scheme the money you contribute (the 9.3%) and your employers contributions effectively go into this big NHS Pension Piggy Bank. Everyone who is working for the NHS and is currently in the scheme will also be contributing to the same Pension Piggy Bank. The money from this Piggy Bank is used to help finance NHS retirees who are now claiming on their Pension today. The money that you contribute, doesn't have a direct impact on what you will get in the future. Once you reach retirement age, the money you get will be financed by those who will be working and contributing to the NHS Pension Piggy Bank at that point in time. (By the way, this highly simplified, but the concept still stands) If you are in the 2015 scheme the amount you get at retirement is determined by your Salary/Build-Up Rate (1/54th of your Salary), the Revaluation Rate (Inflation plus 1.5%). Calculating your projected income is a bit complex as there is no way of knowing what your Salary and the Inflation Rate will be in the future. The example I gave in the video was simplified as I fixed Salary at £20,000 for 25 years (salaries tend to increase as person develop through their careers). I also fixed inflation (which changes year on year). I did this to demonstrate the concept of how the NHS Pension is calculated. From reading online, I understand, that may be a way to get a better estimate through work, I would suggest speaking with someone within your workplace on how to do that (HR or the Payroll team should be able to advise you) I hope this helped. Let me know if you have any further questions :)
Dude! That was so clear, everyone says "the NHS pension is really good" but no-one seems to know any detail past that. I have a few questions, can you take a lump sum at any point? Are you taxed on the pension when it is payed to you in retirement?
Thank you! It very warming to hear that what I set out to achieve has been accomplished. I am glad you found it useful! Thanks for the questions. 1) You can take out your lump sum pretty much anytime AFTER you hit retirement. You will need to apply for this and from what I understand the lump sum payment will be made to you within 30days of your submission. 2) Yes, it is very likely you will be charged Income Tax when you start claiming your Pension. The amount of tax will differ depending on how much you are earning. In the example I gave, if you are earning £15k per year (and you had no other income) you will be charged an Income Tax of someone who earns £15k a year which at todays rates means you are a Basic Rate Taxpayer and will be charged 20%. If your Pension is worth £55k per year you will be charged as a Higher Rate Tax Payer and will be charged 40%. Remember, Income Tax Rates are likely to be different in the future. Another thing to be aware of, that not many people know about, if you breach something called your Annual Allowance or Pension Lifetime Allowance then you can be at risk of paying another tax bill. If you check out my most recent video I explain this in more detail. ruclips.net/video/Jrj485htfss/видео.html, Hope that has cleared things up, give me a shout if you have any more questions!
@@briannuth8099 Yes. As long as you satisfy the eligibility requirements which essentially is just age and the area of the NHS you work in. Then you can enroll in the scheme. faq.nhsbsa.nhs.uk/knowledgebase/article/KA-04447/en-us#:~:text=The%20scheme%20is%20open%20to,general%20medical%20practice%20staff
Hi Ivy, Good question, so if the member of the NHS Pension passes away before they can claim it. A pay-out will be made to a beneficiary (normally this would automatically be a spouse or civil partner, unless specified otherwise). More information can be found here: www.nhsbsa.nhs.uk/pensioner-hub/bereavement/what-happens-your-pension-when-you-die#:~:text=The%20NHS%20Pension%20Scheme%20provides,the%20event%20of%20your%20death.
Hi I am totally confused with what i can take as a lump sum and when .I am in 2015 which i only joined in 2017 so pension will not be any great deal . I have a value on my TRS OF £1044.36 (Pension) is this the annual pension as it stands today? I have a lump sum value of £6962.40 , can i take this amount on retirement?
Hi Denise, Thanks for commenting. I have not actually seen a TRS and the information online is very limited. So the below is my best guess is (but I do think it is accurate). Firstly, Yes the value of your Benefits stands at £1,044.36 per year (once you reach Normal Pension Age). And Secondly, the lump sum value represents your pension benefits if you were to fully take it out as a lump sum (at Normal Pension Age too) I found this website quite useful in providing extra detail on the matter: www.legalandmedical.co.uk/navigate-and-understand-your-nhs-total-reward-statement/
Im a senior supervisor for a NHS Trust in the uk. Many of my team haven't a clue about, well about anything TBH and although I'm not the sharpest pen in the pencil pot, I have been really struggling to understand how NHS pensions work.
As a supervisor, I'm the first point of contact for many of my staff and it's embarrassing that I can't help them due to the lack of management training I get, or don't.
But thanks to your videos, I am a lot more comfortable and confident in what i can advise my team . Thank you.
I tried looking at my TRS and it makes absolutely no sense to anyone except for people who are involved in it hence why I went hunting for explanations on why I'm actually paying anything into my pension. Felt like it was just going into a black hole!
There are lots of pension videos from nhsbsa but they don't really explain anything at all, just silly animations and pop up text. This has been a brilliantly clear explanation of how it works.
Thank you.
Thank you Ewan, these comments mean the world and so thanks again for taking the time in writing a comment. I am pleased to hear the video was helpful :)
Its because all these pensions scheme don’t want you to understand whats going on imo
Thank you so much for this. I have worked for the NHS for 20 years and have struggled to work out the calculations from the statements provided but this has explained things very clearly.
Wonderful!. I am so glad this helped :D.
How can anyone give a thumbs down? This guy is providing you with some very useful info if you work in the NHS.
Hahaha thank you for the comment. And really appreciate the positive feedback!
Wow, great timing. I'm literally getting ready to retire at the age of 63 (64 in sept) as I'm worn out and want to enjoy some time for me. I've been talking to my brother who retired a few years ago, but you've explained it perfectly. Will make my phone call to H.R easier tomorrow 😂
Thankyou
Aww thank you for the kind words. I am so glad this is helpful! I hope the call with HR went well :)
@FinancialMadness
Yes it did thank you😀
Thank you for this video. I have been paying NHS Pension for about 12 years but it is only few months ago that I really understand the importance and value of NHS PENSION. Since then I have been doing more research and now I educate people on my RUclips channel about planning for their future. The future is not as far as many people think.
I think this is the first video that actually emphasizes that the employer contribution has no bearing on the amount of pension that you will receive. Well done👍
Thank you! I am glad you found the video helpful :)
Thank you, My NHS pension officer couldn't explain this at all.
Thanks Rubel! This comment made my evening ☺️
You should be able to see by these questions how badly the NHS explain anything. I cannot get a soul to actually help. So thank you for your videos....
Thank you again :)
Hi Kozan,
Thank you for such helpful information. I am 53 years old was working within the NHS 1995 scheme from 1994 to 2008 then I left the NHS and am currently working as a Nurse in Canada. Could you provide some insight on how I can claim a lump sum as I heard it can be claimed from 50 years old. Is that correct?
Lots of help as a NHS worker who is unsure about being in the NHS pension. Thanks very much Kozan and financial madness for this help! Much appreciated!
Thank you so much. I am glad you found this really useful :)
Making money should be a routine A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k
As with an my big financial decision,it’s important to keep your guard’s up for economic risks.However,smart planning,time management and seeking advise from a financial adviser can help keep you and your money safe.
financial security through diligent saving and investing should be on top of everyone's priority ASAP. I really need some guidance can this Fin coach guide me in this unstable times and why do you trust them much?
I know and am not doubting it I understand people are good at learning by imitation i found her website proficient and left her a message
Thank you. I have really understood more from this video.
One question? Are we able to nominate a beneficiary of a will to the pension pot amount when a pensioner dies?
Thanks a lot! I have been trying to understand the calculations for ages, and you've nicely explained it clearly.
Thank you! It really means a lot to hear that my explanation was clear to understand.
This is really helpful. I have been with th nhs for 10 years and never understood it
Was a no brainer to like. Thank you
I am glad you thought so :)
Age of 65-68 for Paramedics is nuts!
Disgrace
Thank you so much for doing this video. Very much appreciated.
My pleasure! I am glad you found it helpful
If you are startibg your career in the NHS ,please do yourself a favour and join the pension. In your 20s it may feel like wasting money but it is anything but.
Such an informative video - thank you :)
Glad it was helpful!
Fantastic wee video, cheers for that
Thank you for the kind words. I am glad you found it helpful
Hi Kozan, understood and great video, one quick question. At the beginning you stated that the NHS contributes 20.6% into the scheme however when doing your chart we accounted for the CPI and 1.5% and 1/54 but I didnt see you include the 20.6% contribution form the employer. Was that intentional? Am I missing something? Thanks
Have you ever modelled salary sacrifice schemes effect on the NHS pension as its very common?
Wondering about how to compare jam now with tax savings on car leasing vs jam tomorrow with pension losses
Thank you so much for this video, it has indeed given me more understanding about my pension scheme,
NHS Pension can be confusing to understand. Let me know if you have any more questions on the matter?
Check out my other video, on How To Contribute Extra to the NHS Pension: ruclips.net/video/avD2cYOyZQU/видео.html
I live in London does the pension include or exclude London higher cost area supplements when taking into consideration the salary ?
Hi there. Not explicitly.
If you are working in London, typically your salary will be higher, than most other areas (due to the higher cost of living) and therefore the amount from the Build Up rate will be higher and therefore more will be added to your Pension Benefits.
@@FinancialMadness Thanks
So useful…Thankyou for explaining something that appears so complicated to read about online!
Thank you! I am glad this was helpful!
Fantastic! I just sat through an hour long webinar on pensions organised by my LMC and was none the wiser. 10 mins watching you and every word was useful and clearly explained. Thanks!
Thank you Lucy! I am glad you found this helpful :).
Very well explained especially with examples given, thank you
at last a clear easy to follow guide
Thank you. I am glad you found it helpful :)
Super helpful. Thank you so much!
Thank you! I am glad it was helpful!
Thanks for the brief yet thorough information
Thanks. I'm.glad you found it helpful
If I retire at 60 I will have part 95 and 2015 pension pots. My question is for the 95 pension where it is the best of the last 3 years, does this apply to the last 3 years up until 2015 when it changed to the new scheme or it is the best of the last 3 years at point of retiring?
Hi Karen, good question. It counts the best of the last 3 years at the point of retiring :)
Now i can decide if i go for a pension or not. Thank you!!
You're welcome! I am glad I made it clearer for you 😃
Brilliant video . thanks a lot . I just feel it should have been longer and more descriptive . In the end I was thirsting for more .
Hi Faiz, thank you for your kind comments!
If only everyone shared your enthusiasm when it comes to Pensions 😂. If you would like me to make another video on the NHS Pensions (or anything else Personal Finance related), feel free to let me know, I am always open for suggestions :).
While the video was excellent and something which many of us have sought for , I feel I would be even more interested in the following .
1. How does your family get affected and compensated in case of your death while in harness .
2. What happens to your pension after your death post retirement . How to calculate how much the spouse will get .
3. Do you need to nominate your wife for the pension or is it automatic .
4. Is there any scheme better than the NHS pension currently in the UK .
5 . Are there any advantages or disadvantages of starting late and how much actually we may lose by the loss of compounding .
6. Is a life insurance intrinsic to the NHS pension and how much is it .
7. What is the earliest age at which you may voluntarily retire and still be able to avail some part of the pension ( 2015) .
I don't expect you to answer all of these but just some suggestions of what people may seek to know .
And again , thank you very much for a stellar video .
Thanks Faiz, for these insight. I get will probs do a Q&A video based on your questions and from others too. Thank you for sharing
This video is very helpful! I am currently on the 2015 NHS Pension Scheme. A lot of people have been telling me to opt out of the pension scheme as it is a contribution scheme and the amount of money you put into the pot is adjusted with the market and the money you receive when you retire can be much lower compared to what you actually put in. You clarified that the NHS Pension Scheme which works on the defined benefit scheme. I have a question about the re-build rate and pension re-evaluated section (time 9:24). You discuss what the annual pension entitlement is and base it off the re-build rate and pension re-evaluated rate, however, what about the 9% contribution by the employee and 21% contribution by the employer? Where's all of this money gone to?
Hi Parisah,
Thanks for the question and I can see from another comment you already found the answer in my other NHS Pension Video. I am just posting the link here, just in case someone else has the same question and would like it answered too :)
ruclips.net/video/jiJNecxa7AA/видео.html&lc=UgxNgduBDdl4BFP3xE94AaABAg
This is brilliant. Thank you Kozan
You're welcome. Glad you enjoyed it 😀
Last week I was shocked to find that my deferred pension is not subject to any CPI uprate for the years between when I left the NHS (in 1990) and last week when I finally reached my retirement age! I left the NHS as a Band D (Enrolled Nurse) with a few days short of 8 years pensionable service and the pension I receive, as of 2 days ago, is based on my final salary back in 1990 ... and of course that's far below what is minimum wage today. So almost 8 years pension gives me the grand total of £183.99 per month. I think it's criminal that they pull a stroke like that when they tell you it's an "index linked pension" that you're paying into.
Thank you, thank you, thank you, been asking for years how this works now I finally understand.
Glad it helped! Thank you for the kind comment :)
Thank you very much. Concentrated and helpful information.
Great job. Keep up!
Thank you for your comment. I am glad you found this helpful!
Great video. Informative and easy to understand!
Thank you! I am glad you thought so.
Hi Kozan,
Thankyou for taking the time to reply to my question I really appreciate it.
I actually managed to speak to somebody a few days ago from NHS pensions who said that yes next April my 1995 pension would close but I wouldn’t loose the benefits I had accumulated so far and from 1April 2022 the rest of of my pension contributions would go into 2015 pension scheme. She said I would I technically have 2 NHS pensions the 1995 one from 2005 (when I started working for NHS) till 1/4/22 and then the 2015 until I retire.
I understand the 1995 will be closed so no more contributions can be added to it but wondered if I don’t draw it until I retire in 8 years time could its value still increase or possibly decrease.
Your videos are really useful and easy for everybody to understand. Thanks again for making them, I look forward to watching your Q & A on NHS pensions.
Karen
Hi Karen,
Yes, this is correct. Whenever, one person transfers from one scheme to another, the two/three schemes do not merge together. The legacy schemes still exist the only difference is now you are contributing to a new scheme. I will be sure to make this more clear in my Q&A video.
With regards to your 8 years question (it is a really good question), the value of these schemes will not change. For the 1995 scheme your Final Salary is based on your salary during the last 3 years of your membership. Reading the 1995 Booklet (link below, slide 5), your final salary is adjusted to keep up with the cost of living. So you should expect your 1995 final salary to increase at the rate of inflation.
www.nhsbsa.nhs.uk/sites/default/files/2018-04/Key%20Notes-1995%20Section%20Estimates%20%28web%29-20180409-%28V2%29.pdf
Let me know if you want any other questions answered :)
Hi Kozan, thank you once again for your help, it is appreciated. Karen
@@grahamlampert8887 No problem :)
Thank you! My wife's NHS pension statement was indecipherable to us until I watched your video. Now makes complete sense.
Excellent! I am so glad this video was helpful. Thank you for commenting!
What about the lump sum on retirement ? It would be useful to show this as comparison as the 1995 section seems to have a much smaller annual pension vs the 2015 section, however the lump sum would change this comparison.
very good and well exlplained.
Thank you! I am glad you found this video useful :)
Great video. Once have taken your pension ie retired, does your pension increase annually by the current rate of inflation?
NHS pensions are subject to an annual increase which is based upon the consumer price index (CPI) as laid down by HM Treasury every year.
The increase will be applied to your pension at the beginning of April in the new tax year.
@@gerardmccartney3186 thank you for the helpful information.
Yes they do. Thank you gerard for also replying back
OK I'm 60 and lived in France for 20 years. In that time I didn't pay into a pension scheme. I started working for the NHS in 2021. I decided to add a top up to my NHS pension contributions by paying in the maximum allowed, which is £6500 and may do the same this year. Is that a good idea?
I do find it confusing with NHS pension and trying to find out how do I know what is my total pension doing now. I have looks at TRS and is that the way to look at? Or is there way to see? Thanks again
Good question. So your Total Rewards Statement should show you how much of your Pension is currently worth. But I understand there is a separate service you can request if you want to get a prediction of how much your pension will be.
Follow this link: www.nhsbsa.nhs.uk/member-hub/getting-estimate-your-pension
I hope this helps. Let me know if you have any more questions.
Thanks
Really useful information, thanks 👍🏽
Thanks Sharon. I am glad it was helpful!
Excellent informative video.
Thank you, I am glad it was helpful!
Good information. I worked in UK 5 years, I am not UK citizenship, I am not sure if I have right for a pension if a live in a foreign country when I will retire
Thank you. I am glad you found the video useful!
Yes, that is something, I should have mentioned in video (Ha), as I know this is a concern for many NHS workers. Yes unfortunately, if you do plan to move abroad, there is no way to transfer your pension to another "overseas" pension scheme. However, it does seem you can transfer the money from the UK to your new foreign residency using oversea bank payments. (Usually, oversea payments do come with charges).
More info here: nhsbsa-live.powerappsportals.com/knowledgebase/article/KA-04106/en-us
However, I would check the rules for the country you plan to move too, as I know they too can impose restrictions. If you find, that Pensions still aren't the right option because of this, I would strongly encourage you find another means of saving your retirement. Check out SIPPs (they are another type of Pension, and you can find ones that allow you to transfer when you move abroad), or perhaps, consider putting some money away in a ISA, and you can close your ISA before you move away.
I hope this helps :)
@@FinancialMadness Thank you very much for the information. I left UK in 2005, so I don´t know if I have any kind of right. I will check it, Thanks again
You are very welcome @Al 281. It is definitely worth investigating 😀
Thank you @Miss Em. I am glad you found the video helpful :)
thank you for your valuable videos. I wanted to ask if we could have a break from contribution to the scheme ( especially at the beginning of NHS work? if yes how long could it be to be able to come back or start our contribution again?
Hi there,
Thanks for the kind comment, I am glad you found it useful. And yes you can Opt Out and In at any point. There is a really helpful FAQ page provided by the NHS which should answer most of your questions. Let me know if anything doesn't make sense :)
www.nhsbsa.nhs.uk/sites/default/files/2017-03/Member%20Opting%20Out%20factsheet%20%2802.2017%29%20%28V5%29.pdf
Superb video!!! Thank you so much. What is CEV and how do I find it in my TRS?
Thanks Ed, I am glad you found this helpful. Do you mean a CETV? You should be able to access your TRS using a gov.uk verify or via ESR if your employer has given you access to this.
Informative thank you.
Thank you very much!
Hi. If your working past your 1995 retirement age and are moved into the 2015 scheme in April 2022. Which years salary are used to work out your 1995 allowance.
Hi Paul,
Great question. The 1995 Scheme will still be caluclated using your Final Salary even when moved to the 2015 Scheme. As long as you don't take a break in service for more than 5 years.
As per the NHS Website:
"_You will not lose your final salary link if you have one
You’ll also keep your final salary link for your 1995/2008 Scheme benefits, as long as you don't have a break in membership of more than 5 years. This means when it’s time to pay your 1995/2008 benefits, they’ll be calculated using your final salary at retirement.
If you've built up practitioner benefits these will be protected at retirement using arrangements equivalent to a final salary link, as long as you don't have a break in membership of more than 5 years._ "
www.nhsbsa.nhs.uk/changes-public-service-pensions/your-nhs-pension-after-1-april-2022
Great great great video!!!!
Thank you!! I am glad you found this useful!
The issue a lot of staff who are on the 1995 scheme are having relates to them being switched onto the 2015 scheme and then the McCloud judgement where they will be able to count the years from 2015 to 2022 as being 1995 scheme years. The problem is that any years on the CARE scheme aren't counted as pensionable years under the 1995 scheme so for example my wife's years of Reckonable Service is 18, in 2015 (or 25 after McCloud 2022). So if she works on to 2029 and retires at 60 her 1995 scheme pension isn't benefiting those years as multiplication years and the pension generated from 2022 to 2029 will be CARE scheme pension which she won't get to 67 (68 if government gets changes through).
Also, staff trying to boost their salary in final three years by doing a year of nights are being told conflicting messages as to what a year means. The book says 365 days but is this 12 rolling months, a financial year or January to December?
I joined nhs in 1978 took my lump sum in 1995 .
joined again in 1998 and am still employed ,will I still collect my monthly sum when I retire in Oct 2022 .Thanks glenda
I worked in the nhs and came out at 60yrs old. As mentioned in my previous comment, I am hoping it is all safely held for me. You mentioned you should get a yearly statement? I have never once had statement come to me unless I chase one up..by post, it eventually comes. Am I missing something, are they sent out automatically? Maybe it’s because I left the nhs. I am almost64. Thank you
Hi...thanks for sharing your knowledge on pension. I'm a Registered Nurse planning on immigrating to the to join the NHS in a couple of months. My question to you... I'm 55 years old, if I decide to work between 3-5 years with the NHS, can I opt to retire at 60 years? Would I received a pension? I know it would just be minimum working only three to five years. My salary offer is £28,407/annually.
Thanks!
This was so excellent, I loved the excel calculation!
Thanks. I am glad you found it helpful :)
Very clear and easy to understand, Thanks!
Glad it was helpful!
Very informative. Thank you 🙏
Thank you! I am glad it was helpful!
Does the NHS contribution is 20% of the annual income after OR before Tax ?
The NHS pension contribution is taken from your salary before tax. This means that the contribution is calculated based on your gross salary before any tax deductions are made. But remember, this is a type of Defined Benefits Scheme, the money you get from the scheme is dependent on how many years you contribute, average salary, and the revaluation rate. Yours and the employers contributions are helping to pay for the current pensioners of the scheme. Hope that makes sense
Oh dear. Some serious inaccuracies here. Needs an update to include the remedy arising from the McLeod judgement
Hi Ian,
A video has recently been released on McCloud Judgement. I hope this address any concerns you have.
Amazing video man! Super descriptive as well made me realize I gotta improve on my vids haha! Just gained a new sub 👌
Thanks man! I am glad you found this video helpful and thank you for subbing!👍
I have worked in the NHS since the age of 16 now 36 , so have about half of my pension in the 1995 scheme and half in the 2015.
My question is regarding enhancements to my pay and how this will affect my pension. For example I receive stand by payment £325 for on call and a recruitment and retention payment of £224 monthly basis ,both of which are pensionable pay.
It is my understanding that the 2015 is career average , so does this mean that my extra contribution are not going to ultimately increase what my pension salary will be? Any help would be much appreciated.
Hi there,
Thanks for reaching out.
So any pensionable pay is taken into the 2015 career average scheme, so these extra payments will help increase your pension salary. And should be taken into account when calculating your Career Average.
I hope this helps
@@FinancialMadnessThanks you for taking the time to answer that for me. Much appreciated 👍🏼
Hi Kozan, really helpful video! What happens if you would like to leave the NHS early (say 55 years old) but have had a 30+ year career in the NHS and do not need to access to your NHS pension until state retirement age (68 years old). Would this affect your entitlement? This would be based on the 2015 scheme. Thank you!
Hi A Taylor.
Great to hear that you found the video helpful! As for your NHS pension, it's important to note that choosing to do this won't have any negative impact on your current 2015 pension benefits. The only thing that would change is that your benefits would no longer increase (because you are no longer working, however, that your pension should still be adjusted in line with inflation). So don't worry about any penalties - you're good to go!
Hi, are you able to explain the revaluation factor and what it means for the value of my pension please? Thank you
This is SO helpful
I am so glad to hear. Thank you so much :)
Thank you for the video!!
My pleasure! I am glad it was helpful :)
Thank you for the video. I have recently realized the changes and now understand that the 1995/2008 benefits remain. I'm 51. Started in 2001, left 2015 and returned 2021 at a lower banding and therefore salary. Will my 1995/2008 remain with the salary i had at that time (it was the highest in 2015 when I left). I really struggle with the TRS to access my own information!
Hi Tilly,
Thank you for the comment and kind words.
The older pensions do take into account your salary at the time of your pension.
But because you left for a significant period I have a feeling there might be an exemption. I am currently away on leave and can check when I get back over the weekend.
Hi Tilly,
So reading the NHS Documentation here: www.nhsbsa.nhs.uk/sites/default/files/2021-08/NHSPensions_Glossary_of_commonly_used_terms_V2.0_202108.pdf
It says
_"If you’re a deferred member, your benefits will be based on your scheme membership and the best of your last 3 years’ pensionable pay or reckonable pay when you left NHS service or stopped contributing to the NHS Pension Scheme.
The legacy 1995/2008 Scheme closed to new members with effect from 1 April 2015. All members who are currently in the 1995/2008 Scheme will be moved into the 2015 Scheme on 1 April 2022. You won’t lose any benefits you earned under the legacy scheme and you’ll keep your final salary link for benefits earned before 1 April 2022, as long as you haven’t had a break in service of more than 5 years between 1 April 2012 and 31 March 2022."_
As you have had a break in service for more than 5 years, that means your Legacy Pension will be based on your salary in 2001.
Hi, I'm actually new in the UK and I'm contemplating if I should opt out from the pension scheme for the meantime until I adjusted with my finances and to enroll back. Is it true that when you opted out of the pension scheme, the tax will increase? Hope you can enlighten me with this. Thanks.
Btw, your video helped me well to understand its benefit. Thanks.
Hi Financial madness , if I retired early ie 62 . I would not need my pension until normal pension age 67 ahhhh. So what would happen to my pension ie any rise over those years?
Hi John, yes great question, if you stopped working for the NHS, from that period until you claim your pension will still increase by the rate of inflation (i.e. Revaluation Rate)
Who can I call to give me advice... The nhsbsa? They don't seem to want to help. Thinking of taking a lump sum... And rejoining pension by going back to work is it after 24 hours? I'm in 1995 scheme AND 2015. Worked for NHS from 2002. 😢 Nobody to help me
Hi Anne,
I am happy to offer some guidance. Please note however that I am not a Financial Advisor nor do I work for NHS Pensions. But if you are struggling to find help, feel free to email your questions to me at financialmadness1@gmail.com and I can take a look :)
This was really helpful
Thank you. I'm glad you found it useful
If we opt out of pension after 1 year, Do we get the amount which NHS also contributed to it? ( for eg: The salary is 2000 pounds. I have contributed 200 pounds each month and NHS contributed 400 ( 20% of 2000) each month. If I opt out after 1 year, do I get 7200 pounds? (200 * 12 + 400 *12)
Thank you, for so much help. My little brain holds a certain amount, then, I lose my concentration. Kind of why I left the nhs..burn out! Question, if possible please respond, I left nhs when I was 60, I am coming up to 64, I have some in the 2008 and some in 2015. I am assuming it is all just frozen and held for me..safely! I will take the 2008 at 65 and 2015 at 66yrs 6 months, my state pension age. Is any of it going up in value anywhere..whilst it’s being held for me?! Or did it all literally just freeze.
Thank you.
So helpful thank you
You're welcome. I am glad you found it helpful 😃
Good video...
Pls explain my annual salary before tax is 9000 per annum...
Pls calculate how much will be mine and how much will be NHS Contribution per month from this gross salary ?
I have responded in your other comment.
Is there any kind of insurance in nhs pension ? For example I work for NHS 5 years and I'm part of the nhs pension. And For example I had accident or I'm sick and I can't work for NHS. I'm band 7 is there any protection in that side ?
There doesn't seem to me be any insurance cover 'per-se' on NHS pension if you become temporarily out of action due to a sickness or an accident. They do allow for early access to your pension if you do become permanently incapable to carry out your duties.
www.nhsbsa.nhs.uk/sites/default/files/2019-11/Ill%20health-AW33E-20190717-%28V18%29%20digital.pdf
There is a separate scheme called the 'Injury Benefits Scheme' which pays benefits to temporary or permanent loss of earnings, however this seems to cover incidents that are related to work only. So accidents outside of work will not be covered. Also, do check if you are covered under the scheme, there is a helpful section on the websites FAQs. www.nhsbsa.nhs.uk/about-injury-benefits-scheme
For anything else, you may have to go privately to obtain full coverage, but it is worth speaking with your Employer directly to check this.
Been in NHS since 2006 , at 60 want to take my whole NHS pension , put with another pension I have and drawdown every year . Is this possible ? Thanks
Hi Mr M,
Thank you for the comment, however I am struggling to understand your question. Do you want to withdraw your NHS Pension in one Lump Sum at the age of 60 and drawdown from another Pension Fund for your retirement years???
If so, then yes. You can do this, however I would look into the Tax Implications of doing this, as this may not be the most tax efficient way to withdraw on your Pension.
Great explanation. Can you still pay additional contributions to the 1995 NHS pension scheme?
Thank you. I am glad you enjoyed the video.
Only if it you are an active member of the 1995 scheme can you make additional contributions to it.
Nice video
Can I ask in my case I want to opt out because i want to leave the uk.I have joined d nhs pension scheme more than a year ago ,will my refund include my employer‘s contribution as well or is it just my own contribution.
great. thank you
No problem. I am glad you found it useful 😃
I know the 1995 pension will be frozen but will it still rise with inflation? Thanks, very helpful videos!
Yes. Even if you are not an active member of the 1995 Scheme, the pension benefits are still protected against inflation. You can find more information here
www.bma.org.uk/pay-and-contracts/pensions/increases-to-your-pension/inflationary-increases-to-your-nhs-pension#:~:text=If%20you%20are%20an%20active,with%20pensions%20increases%20plus%201.5%25.
Really helpful video, thank you! I’m looking into additional voluntary contributions to boost my NHS pension. Online help is very limited & online only really directs me Additional Pension. Is this the same thing??
Glad it was helpful!
Additional Pension is just one possible way you can contribute more to your NHS Pension. I created a video on what this type means and other common options that are also available. ruclips.net/video/avD2cYOyZQU/видео.html
I hope this helps :)
Great video
Really helpful, great video. Up late at night thinking about the future but glad I stumbled upon this 😄. I am wondering if you think it is work opening a SIPS as well as paying into the nhs pension. I hear it can act as a bridge if you wish to retire earlier than the standard retirement age. 68 seems too long for me!
Hi Andy, I am glad you found this video helpful after what I can only imagine must have been some serious Personal Finance RUclips Rabbit Hole! 😂
You have quiet a few options available to you, if the retirement age of 68 is of concern to you then a SIPP is a good way to combat that, it can act as a top-up and has an earlier retirement age of 55 (soon to be 57).
Alternatively, you can think of investing your money through an ISA. Unlike the Pensions you don't get tax rebates when you contribute, but you don't have to worry about paying any taxes at withdrawal, and there are no age restrictions too.
I made a video earlier where I toss up the pros and cons of contributing more to Pensions or ISAs, so might be worth checking out: ruclips.net/video/e3ckUUMBxmU/видео.html
Also, the next video I am working on is the concept of how contributing too much to your pension can actually be a bad thing. Might be helpful for you to check that out once its released on Monday :)
Thank you so much for taking your time to make this video .. it is really helpful.. one small Question. What if some one dies far before reaching the retirement age ?
Hi Dekey,
Apologies for the delayed reply. I am glad you found the video useful.
If you become severely ill, you can gain access early to your pension, without any penalty.
In the event of you passing away before retirement ages then yes, your Spouse/ Civil Partner or nominated Partner can receive a lump sum on death and they will later receive a proportion of your final salary until they pass away.
Wow a final pay pension, I am in the wrong job. Hands up all those people on a private final pay pension.
clear as mud
what hapens the pension (2015 )amount ,when a employer died ? if spouse presnt, if childeren abvoe 18 age..?
Hi, thank you for the question.
If the employee dies before reaching retirement or within 5 years of retirement and the spouse is present without any dependant children, then the spouse may be entitled to a lump sum cash.
If the employee dies whilst in retirement, the spouse will receive the employees final salary pension, but at a reduced rate.
I hope this helps
Thanks
How can I obtain the AW8P form?
Hi,
Use the link below to download
www.nhsbsa.nhs.uk/sites/default/files/2023-08/NHSPensions_AW8Pform_%28V22%29_202303.pdf
Much informative..In ur example table u showed pension revaluated and rebuild rate.accoeding to ur example one who only get £14000 p.a..Where the contributions going? can u pls explain with our contribution and nhs contribution with an example table.if my p.a £25000 and contribution 9.3% monthly
Hi Sona S, thank you for your question.
The NHS pensions work slightly differently than most workplace pensions. It is on something called a "Defined Benefits Scheme" which is a scheme that allows you to get a final salary for life until you die. (This is different to the common "Defined Contribution Scheme', which gives you a pension based on how much you and the employer have contributed into your individual Pension Pot and pension for life is not guaranteed).
Under the NHS Defined Benefits Scheme the money you contribute (the 9.3%) and your employers contributions effectively go into this big NHS Pension Piggy Bank. Everyone who is working for the NHS and is currently in the scheme will also be contributing to the same Pension Piggy Bank. The money from this Piggy Bank is used to help finance NHS retirees who are now claiming on their Pension today.
The money that you contribute, doesn't have a direct impact on what you will get in the future. Once you reach retirement age, the money you get will be financed by those who will be working and contributing to the NHS Pension Piggy Bank at that point in time. (By the way, this highly simplified, but the concept still stands)
If you are in the 2015 scheme the amount you get at retirement is determined by your Salary/Build-Up Rate (1/54th of your Salary), the Revaluation Rate (Inflation plus 1.5%). Calculating your projected income is a bit complex as there is no way of knowing what your Salary and the Inflation Rate will be in the future. The example I gave in the video was simplified as I fixed Salary at £20,000 for 25 years (salaries tend to increase as person develop through their careers). I also fixed inflation (which changes year on year). I did this to demonstrate the concept of how the NHS Pension is calculated. From reading online, I understand, that may be a way to get a better estimate through work, I would suggest speaking with someone within your workplace on how to do that (HR or the Payroll team should be able to advise you)
I hope this helped. Let me know if you have any further questions :)
Dude! That was so clear, everyone says "the NHS pension is really good" but no-one seems to know any detail past that. I have a few questions, can you take a lump sum at any point? Are you taxed on the pension when it is payed to you in retirement?
Thank you! It very warming to hear that what I set out to achieve has been accomplished. I am glad you found it useful!
Thanks for the questions.
1) You can take out your lump sum pretty much anytime AFTER you hit retirement. You will need to apply for this and from what I understand the lump sum payment will be made to you within 30days of your submission.
2) Yes, it is very likely you will be charged Income Tax when you start claiming your Pension. The amount of tax will differ depending on how much you are earning.
In the example I gave, if you are earning £15k per year (and you had no other income) you will be charged an Income Tax of someone who earns £15k a year which at todays rates means you are a Basic Rate Taxpayer and will be charged 20%.
If your Pension is worth £55k per year you will be charged as a Higher Rate Tax Payer and will be charged 40%. Remember, Income Tax Rates are likely to be different in the future.
Another thing to be aware of, that not many people know about, if you breach something called your Annual Allowance or Pension Lifetime Allowance then you can be at risk of paying another tax bill. If you check out my most recent video I explain this in more detail. ruclips.net/video/Jrj485htfss/видео.html,
Hope that has cleared things up, give me a shout if you have any more questions!
Is there a minimum and maximum number of years you can pay into the 2015 scheme?
Hi @briannuth8099, no there isn't a minimum nor a maximum :)
@@FinancialMadness thank you. Does that mean that even if you worked for 1 year you could still qualify for your pension?
@@briannuth8099 Yes. As long as you satisfy the eligibility requirements which essentially is just age and the area of the NHS you work in. Then you can enroll in the scheme. faq.nhsbsa.nhs.uk/knowledgebase/article/KA-04447/en-us#:~:text=The%20scheme%20is%20open%20to,general%20medical%20practice%20staff
i started in NHS as doctor feb 2008, which scheme would i come under please
im just curious about this nhs pension, what if someone passed away before the age of 55 does she/he get back the money she or he contributed?
Hi Ivy,
Good question, so if the member of the NHS Pension passes away before they can claim it. A pay-out will be made to a beneficiary (normally this would automatically be a spouse or civil partner, unless specified otherwise). More information can be found here: www.nhsbsa.nhs.uk/pensioner-hub/bereavement/what-happens-your-pension-when-you-die#:~:text=The%20NHS%20Pension%20Scheme%20provides,the%20event%20of%20your%20death.
Can you make additional payments in to your NHS pension?
Hi Tom, yes you can.
I actually made a video on this, if you want to learn more. ruclips.net/video/avD2cYOyZQU/видео.html
Hi
I am totally confused with what i can take as a lump sum and when .I am in 2015 which i only joined in 2017 so pension will not be any great deal .
I have a value on my TRS OF £1044.36 (Pension) is this the annual pension as it stands today?
I have a lump sum value of £6962.40 , can i take this amount on retirement?
Hi Denise,
Thanks for commenting. I have not actually seen a TRS and the information online is very limited. So the below is my best guess is (but I do think it is accurate).
Firstly, Yes the value of your Benefits stands at £1,044.36 per year (once you reach Normal Pension Age).
And Secondly, the lump sum value represents your pension benefits if you were to fully take it out as a lump sum (at Normal Pension Age too)
I found this website quite useful in providing extra detail on the matter: www.legalandmedical.co.uk/navigate-and-understand-your-nhs-total-reward-statement/