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 NHS Pension Explained : th-cam.com/video/6G0zjF3V83M/w-d-xo.html
From the way I see it if you are b2/b3/b4/b5/b6/b7 nhs staff and contribute for 35 years I think there is no need for contributing anything extra. At the end of day you will still have to pay 20% taxes after your tax free allowance of 12,570 GBP (as of today). I think it will make much more economical sense if you join the nhs later on in your career. Is my logic flawed? Great video. Thabks
Hi, thanks for all your videos. Did you ever get a volunteer to do the TRS example? Also do you have a video showing how the calculator tool works in practice with examples. Am happy to volunteer if needed for all? Keep up the good work.
Hi Katy, yes I did. Please find on my channel a video of walking through the TRS portal. You mean the calculator tool the NHS provide? If so no, but I can revisit this topic if you would like
Thanks very much for this helpful video. I am wondering if I should get additional pension or invest my extra money into a LISA? I do have around 4k extra a year so want to know where best to put it to support retirement. Any tips will be much appreicated.
Hi there, Yeah great question! And I am glad the video was helpful!. There is no right or wrong answer, I would just way up the pros and cons of the situation and figure out what works best for you. i.e. LISA has a lower age to access it (great if you want to retire earlier), NHS is a defined benefit scheme (if you prefer a knowing you have pension income for life). Also, try and get an estimate of what your NHS pension is worth, and what contributing extra may do? Putting numbers (even ball-park figures) really help with decision making.
im struggling with this one too, i think im going to split my money between the 2. 2015 scheme and LISA, i still have a lot more to research, but those are my initial thoughts
Hi Financial Madness, I have a few questions concerning ERRBO and additional pension payments. If I were to do the ERRBO to 65 for retirement, are the full additional pension payments included in that? Can you reduce your hours to part time say at aged 62 and still receive full pension when I reach 65 with the full additional payments? If I were to just opt for additional payments, how much should I purchase? Thanks and great vid.
Great video. I'm looking at how to bridge the gap between when I want to retire, and State Pension Age (68+ for me). I'm considering MPAVC to keep myself out of the higher tax bracket, and to provide a pool of money to retire early (maybe 60) while waiting for my NHS and State pensions to come in. At about 4 minutes, you mention that 'money invested in the market and will act as a supplement to your normal nhs pension when you hit your normal pension age'. Does that mean that MPAVC is not accessible until State Pension Age? If so my plan of using MPAVC to bridge the gap is scuppered. Thanks
Hello, thanks for the video. Having trouble working out how much to contribute. The form still appears confusing to me. Would the payroll/pension officer beable to help
Sorry to hear you are having trouble. These forms are not easy, so don't fret for not understanding immediately. Please let me know specially which form you are referring too and what exactly confuses you and I can try and help. Thanks
Hi , Very informative videos ... My wife has been a nurse for the Belfast trust for over 20 years , she finds it near impossible to find anything out about her pension and has only got around 3 statements in all that time. She has been told that the only way to find anything is to log in at work to the pension portal, my wife doesn't really know what to look for when she has gone onto the portal. I think that this is crazy so I was wondering if there is an outside body or experts that deal with such things as wed like to add contributions etc if needed before retirement comes.
Thanks Martin. I am glad my video was useful. I actually here this is a common issue amongst many members of the scheme. I would love to do a video on this and I am currently looking for a volunteer to give me a virtual tour of the TRS portal, so I can make a video on how to use it. (All details will be kept anonymous and confidential). Would this be something you are interested in?
I am about to work in NHS with annual salary of 72000 before Tax.. What will be the percentage of my contribution to the pension ? Will it be before tax and NI or after ? Please explain ...
Hi, apologies for the delay in response. You can check out the contribution rates in the link below. But effectively on this salary you are Tier 6 so the cost of being in the scheme will be 13.5% before Tax. However, you do get tax relief when you contribute to your pension (i.e. you will be paying less tax, because you are contributing to your pension). So, in real terms its more 7.5% (net of tax). Check out the second link to understand how it works nhsbsa.nhs.uk/member-hub/cost-being-scheme www.nhsbsa.nhs.uk/sites/default/files/2019-04/Cost%20and%20contributions%20from%202015-16%20factsheet%20%20%28Officer%29%20-20190328-%28V4%29%20.pdf
Great video - just the clarity I was looking for. I have a quick question though. I have a 2015 pension scheme joined last year. I have a small pension pot with another provider from a previous non-NHS employer. I am allowed to transfer this in, in the first 12 months but am not clear on how this would help the final salary. Is it worth transferring my other pension into the NHS pension and how would this help my final salary calculation please?
Hi, Great videos, and really informative. I'm currently in the 2015 scheme but opted to buy back added years 1 month before March 2008 deadline. I've been told that these added years will continue and I will receive the benefits from this scheme. I've had a look through my Total Rewards Statement, have you any advice on how to read this to give me an idea of what to expect and do I need to be squirelling a little more away? Thanks Kieran
Hi choppysocks, it is definitely worth considering, as Final Salary schemes are a great retirement tool. Two things you should definitely consider however, is figuring out what your expected Final Salary could look like when you reach normal pension age and the age at which you can access this scheme, (currently following State Pension age). If your happy with the expected Final Salary (i.e. without contributing more), it might be worth diversifying your money somewhat by putting it in other areas where your not penalised for accessing your money earlier on - Investment ISAs or SIPPs are just a few examples.
hi, informative videos thanks you, I am a deferred member and want to access my statement so I can decide on retirement yet, how do i do this. i remember access an account but no idea how to find that now .
Hi Mandy, Thanks for your question. As I have not worked for the NHS, I unfortunately am unsure of how the statement process works. From what I understand you can access your pension statement through a portal. Perhaps you can raise this with the NHS Pension team themselves, if you are unsure how to access it. Contact details are here: www.nhsbsa.nhs.uk/member-hub/contact-nhs-pensions-members
Hi, thanks for explaining the NHS pension to us, I’ve always found it very confusing. I’m one of those people that has all x3 schemes, as I have had breaks in my career where I didn’t pay into my nhs pension which in hindsight I shouldn’t have done. I am now on the 2015 since 2010, but the 1995 and 2008 are still there, I think just frozen. Is there a way of combining them? Is it advisable?
Hi Rose, Thank you for your comment, I am glad you found it useful. It is possible to do a transfer between schemes, however according to the booklet (link below) , to be eligible to this you have to apply for the transfer within the first 12months of enrolling in the scheme. Seeing as you said you were in the 2015 Scheme since 2010, it does seem you may have missed the boat. Transferring the benefits between schemes can get quite complex and without knowing the entire situation I can't say for sure which way would be better. As a first step, it might be good to speak with someone in the NHS (payroll/HR) and see if this option is available for you and feel free to reach me on IG or Email (links in my about me) and we can discuss further if you wish. :) Info based from this booklet: www.nhsbsa.nhs.uk/sites/default/files/2020-01/Transfer%20Booklet%20%28V20%29%2001.2020_0.pdf
Hi, thanks. I was on the 95 scheme and got moved over. I Plan to retire at 60 (I'm 52 now and have 26 years years paying into the nhs pension). Does this mean any money I have paid into the 2015-2018 schemes will be able to be taken at the age of 60?
I’m buying additional pension at the moment. Can I ask if I have it set up to come out each month for say10 years purchasing £6000- does that mean I earn an extra £6000 a year in my pension always or just the 10 years
Hi Thanks for explaining the pension. Is there any way that one can nominate a second beneficiary along with spouse. God forbid if the both parents die in an accident then how their pension can be distributed to children?
Hi qasim1971, Apologies for the delayed response. Thank you for the feedback, I am glad you found it helpful. With regards to your questions (which is an excellent question by the way). It does seem you can nominate several individuals, given that the NHS Pension website does state the following: "In the event of your death, the NHS Pension Scheme may provide for your family or a person you have nominated.". (With family being the key word here). It is worth discussing with the provider how to do this.
Is it possible to buy additional "units" for 2008 & 2015 schemes and take pension early (say at 60 but obvs a reduced payout) or would the reduction wipe out the benefits ?
Hi, Thanks for commenting. No this isn't possible. You can only contribute more to schemes with an active membership. It sounds like, in your case that would be the 2015 scheme :)
I'm trying to figure which way if any is better for a 30 year old member with 6 years service to increase their contributions (2015 scheme)? My aim is to retire early and do one or two days if possible/financially efficient. I'd like to do this by 60.
You can definetly make use of the pension planning tools that the NHS offer that provide an estimate of what your expected Pension Income would be. As I am not an employee of there's, I cannot pinpoint you directly, but I do know they exist. As the 2015 scheme cannot be accessed before age 65 (at a minimum, without penalty) it might be worth exploring other products to help fund your years from 60 to when you can claim your NHS pension.
As you said the range of additional payments range from £250 - £5000 am I correct in saying that is the amount per year? ie if I have been an NHS employee contributing for 17yrs say I choose to make an additional payment of £2000 that becomes 17 X £2000 equalling £34000.
HI, do you have any reliable knowledge of the 2015 police pension scheme. Interested in the additional voluntary contributions. The pensions website has an excel calculator for AVCs but is difficult to understand. Many thanks.
@@FinancialMadness Thanks so much. Here in Scotland there was a recent ruling where officers can leave with 25 years service as long as they were 50 years old. The whole age discrimination thing is not resolved in my opinion. Very confusing.
@@DreStev Thanks for the insight. Leave this with me and I will do my best to clear this up. Might even make a video out of it, as it may help others too. Will get back to you by the end of the week 😊
Hi Steven, apologies for the delay. I had the flu last week and wasn't able to finish of the video. I've just released the Police Pension video which hopefully answers your question. Thanks for commenting th-cam.com/video/uu7EW_SkmHE/w-d-xo.html
What happens if one has multiple NHS jobs and each Job takes off money towards NHS pension. Is the cumulative earnings added up to determine pensionable pay? How do they determine which tier of contribution you are in if one of your extra NHS jobs is variable earnings ie locums ?
Hi. Unfortunately, that is not within my remit as I am not a professional financial advisor. But I am happy to answer any questions you may have, you can comment here or email me at financialmadness1@gmail.com
Hi, Thenaks for the great videos! I have three quetions :) 1. So, if I am under 2015 (or 2008), which additional contribution should I choose first? There were two in vedeo... Also, which is better to do lump sum or monthly... for the total and tax etc? 2. When I started working at the first NHS organisation, I was under 2008, but I have changed organisations a few times with a few weeks or months gaps... and we were originally told to switch from 2008 to 2015 automatically unless some of us were under special conditions such as our retirement age is coming soon etc...(something like this...) However, my ex colleague was just telling me there was a recent court case about to choose 2008 or 2015 at retirement... are you aware? I am thinking to ask payroll or financial advisor in my trust if any. Or do you know where I can check my NHS pension forcast...? 3. I am originally from abroad (not Commonweath or EU countries)... IF I decide to go back my country far before retirement age e.g. 54 years old after 16 years contribution to NHS pension, what is happening to my pension? Can I receive it via the UK bank when I reach state pension age (67 to me)? Mant thanks
Hi Aji, 1. You can only make additional contribution to the scheme you are currently contributing too. If you are on the 2015 scheme but you have a legacy 2008 scheme from the past, additional contributions can only be made into the 2015 scheme. With regards to lump sum vs monthly - it really comes down to affordability. Personally, if there is no difference in price, no need to stress yourself out by paying a large lump sum as the opportunity cost of putting the money elsewhere is higher (something to think about) 2. Not sure what the question is. But yes, when the 2015 Scheme was introduced most members were automatically switched onto this scheme. Protection was given to members which met a specific condition, these protection was known as "Full Protection" (meaning you will never move to the 2015 scheme), or "Tapered Protection" (meaning you will eventually move to the 2015 scheme, when this happened would be down to your age). By April 2022, all legacy schemes will be closed and the 2015 scheme will be the only active scheme. I have planned a NHS Pensions Q&A video, which will be released in the next week or so, where I talk more on this. Stay Tuned... :) 3. You will have two options available to you, if you decide to move to move overseas. Once you reach the normal pension age or minimum pension age you can: a. get the NHS Pension to pay directly to your overseas bank account, if its eligible. Application forms per country can be found here: www.nhsbsa.nhs.uk/member-hub/applying-your-pension b. If this isn't an option, you will have to set up an UK Bank Account just for the money to deposited, and you can then transfer this over to your overseas account. Please be aware, that oversea transfer typically come with fees and taxes, so you may need to think about how best to do this, to avoid paying to much in fees I hope this helps. Let me know if you have any more questions.
@@FinancialMadness Thanks so much. P.S. In my comments, I was talking about www.nhsbsa.nhs.uk/february-2021-update-government-changes-public-service-pension-schemes
@@aji_noriko1576 Thanks for sharing the link. Yes that what I tried to provide on point 2. But I will go into more detail in my next video. If you still have questions then, please do let me know :)
This is really useful and understandable. I was wondering if you had any opinion on whether if would be be better to pay for say the ERRBO or AVC or just invest that money in a SIPP which you can take out at the minimum pension age and then wait till state retirement to get the NHS pension. I can't work out which would be better to do, maybe all of them?
Great video , it all makes sense now , I’ve been in the nhs for 15 years but only just joined the pension , after doing my working outs , it means on my current band 5 pay of £32934 in 10 years if I leave nhs at 60 i will only get £775 a year or £64 a month , hardly seems worth it when I’m paying in £ 267 a month , if I’m right it makes more sense just to save the £267 a month for 10 years which will give me a lump sum of £32040 , none of the nhs pension people can explain how it works , but you can , many thanks
Hi gazfire1 Apologies, for the slight delay in response. But I am not sure your calculations are correct! I did a quick calculation on my end. After contributing One year to the Pension at a salary of £32,934 your Pension benefits will stand at ~£610. (Assuming this on the 2015 scheme) If your salary is the same in the next 10 years, and you continue to contribute, your Pension Benefits would be ~£7,154.85. Which will be ~£600 a month
I am currently getting my NHS Pension since the age of 50 however I understand that been as part of my payments where op out (which I was not aware of) from the ambulance service having contacted the state pensions people who advise there is a shortfall if I had not asked them I would not be aware of. If you can let me know it would be helpful.
@@FinancialMadness Hi Many thanks for your reply, I worked in the anbulance service for 35 years and took my work pension at 50 so I am aware of the reduced work pension. I have been informed when I contacted the state pension people, that for a period of time my state pension had been out sourced (unknown to me) and there is now a shortfall, which means I won't get the full state pension when I reach the countdown age of 66. Is there somethink that I can do about this.
@@OO-ex5iq Apologies for the late reply. Hmm this sounds interesting. I have read about contracting out for Additional State Pension (or S2P, previously called SERPS), but I am unaware of this happening to the main state pension. Happy to looking into this more closely. Do you mind just providing your date of birth. Happy for you to reach me on my email if you prefer: financialmadness1@gmail.com
Hi there. No I don't. I am not in a position to advise on an individual's investment decisions. However, if you do have questions from an educational perspective, I am happy to answer them. Feel free to drop me an email at financialmadness1@gmail.com Thanks
Thank for the question. There are many ways you can contribute extra to your NHS Pension, but not all the ways are applicable to the 1995 Scheme. Do you know which type of additional contributions you requested? (i.e. Additional Pension, MPAVC etc..)
@@billynichols6976 Hmmmm...how weird? It might be worth following up with them again and finding out. I just double checked and I can't see any reason why you wouldn't be able to contribute more. Looking at the latest 1995 Scheme Guidebook (link below), on page 11, it shows you do have options to increase your pension contributions. www.nhsbsa.nhs.uk/sites/default/files/2019-03/1995-2008%20Members%20Guide%20%28V22%29%20printable%2002.2019_0.pdf
@@FinancialMadness @ billy nichols www.nhsbsa.nhs.uk/sites/default/files/2021-04/Added%20Benefits-Additional%20Pension%20factsheet-20210423-%28V9%29_0.pdf this info seems to suggest that you can't add to 1995 scheme if you have transitioned 'You can only purchase additional pension from the Scheme that you are an active contributing member of. Therefore, once you have transitioned to the 2015 Scheme you may only purchase additional pension to increase your 2015 Scheme pension. It is not possible to purchase additional pension to increase benefits from the 1995 or 2008 Section once you have transitioned'
@@isobelhinton2003 Thanks for raising that point. It is a point definitely worth mentioning! Assuming @billy nichols is an active member of the 1995 scheme, I still can't see why he has been rejected to contribute. Unless he in actual fact has transitioned to another scheme.
Hi Ali, Unfortunately this isn't enough information for me to go on. 1) Your MAIN NHS Pension, is based on your Salary not how much you are contributing 2) Your Additional Pension is based on the investment option you or your provider has chosen. You should be able to see a statement of the current benefits online. I hope this helps.
@@FinancialMadness Is the Additional Pension also guaranteed since one has to purchase in the multiples of £250s described in the video as an increment to the main NHS pension benefit per annum? Using the information, One unit of the £250 APS actually costs 3470 pounds as lumpsome. 6565 pounds which is the maximum will cost £116,594.40. How does this compare to SIPP OR Index funds globally?
Hahaha, truth be told I have a close friend who is a paramedic and works for the NHS and he asked me to explain the Pension Scheme to him. I then turned it into a video, not expecting to get much response hahaha (how wrong was it). Not a massive fan of Hip Hop so doubtful, maybe some reggaetón :P
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 NHS Pension Explained : th-cam.com/video/6G0zjF3V83M/w-d-xo.html
So nice to have a normal person explain financial jargon
From the way I see it if you are b2/b3/b4/b5/b6/b7 nhs staff and contribute for 35 years I think there is no need for contributing anything extra. At the end of day you will still have to pay 20% taxes after your tax free allowance of 12,570 GBP (as of today). I think it will make much more economical sense if you join the nhs later on in your career. Is my logic flawed? Great video. Thabks
Hi, thanks for all your videos. Did you ever get a volunteer to do the TRS example? Also do you have a video showing how the calculator tool works in practice with examples. Am happy to volunteer if needed for all? Keep up the good work.
Hi Katy, yes I did. Please find on my channel a video of walking through the TRS portal.
You mean the calculator tool the NHS provide?
If so no, but I can revisit this topic if you would like
Thanks very much for this helpful video. I am wondering if I should get additional pension or invest my extra money into a LISA? I do have around 4k extra a year so want to know where best to put it to support retirement. Any tips will be much appreicated.
Hi there,
Yeah great question! And I am glad the video was helpful!.
There is no right or wrong answer, I would just way up the pros and cons of the situation and figure out what works best for you.
i.e. LISA has a lower age to access it (great if you want to retire earlier), NHS is a defined benefit scheme (if you prefer a knowing you have pension income for life). Also, try and get an estimate of what your NHS pension is worth, and what contributing extra may do? Putting numbers (even ball-park figures) really help with decision making.
im struggling with this one too, i think im going to split my money between the 2. 2015 scheme and LISA, i still have a lot more to research, but those are my initial thoughts
Hi Financial Madness, I have a few questions concerning ERRBO and additional pension payments. If I were to do the ERRBO to 65 for retirement, are the full additional pension payments included in that? Can you reduce your hours to part time say at aged 62 and still receive full pension when I reach 65 with the full additional payments? If I were to just opt for additional payments, how much should I purchase? Thanks and great vid.
Great video. I'm looking at how to bridge the gap between when I want to retire, and State Pension Age (68+ for me). I'm considering MPAVC to keep myself out of the higher tax bracket, and to provide a pool of money to retire early (maybe 60) while waiting for my NHS and State pensions to come in.
At about 4 minutes, you mention that 'money invested in the market and will act as a supplement to your normal nhs pension when you hit your normal pension age'.
Does that mean that MPAVC is not accessible until State Pension Age? If so my plan of using MPAVC to bridge the gap is scuppered. Thanks
Hello, thanks for the video. Having trouble working out how much to contribute. The form still appears confusing to me. Would the payroll/pension officer beable to help
Sorry to hear you are having trouble. These forms are not easy, so don't fret for not understanding immediately.
Please let me know specially which form you are referring too and what exactly confuses you and I can try and help.
Thanks
Hi , Very informative videos ... My wife has been a nurse for the Belfast trust for over 20 years , she finds it near impossible to find anything out about her pension and has only got around 3 statements in all that time. She has been told that the only way to find anything is to log in at work to the pension portal, my wife doesn't really know what to look for when she has gone onto the portal. I think that this is crazy so I was wondering if there is an outside body or experts that deal with such things as wed like to add contributions etc if needed before retirement comes.
Thanks Martin. I am glad my video was useful. I actually here this is a common issue amongst many members of the scheme.
I would love to do a video on this and I am currently looking for a volunteer to give me a virtual tour of the TRS portal, so I can make a video on how to use it. (All details will be kept anonymous and confidential). Would this be something you are interested in?
I am about to work in NHS with annual salary of 72000 before Tax..
What will be the percentage of my contribution to the pension ? Will it be before tax and NI or after ?
Please explain ...
Hi, apologies for the delay in response.
You can check out the contribution rates in the link below.
But effectively on this salary you are Tier 6 so the cost of being in the scheme will be 13.5% before Tax. However, you do get tax relief when you contribute to your pension (i.e. you will be paying less tax, because you are contributing to your pension). So, in real terms its more 7.5% (net of tax). Check out the second link to understand how it works
nhsbsa.nhs.uk/member-hub/cost-being-scheme
www.nhsbsa.nhs.uk/sites/default/files/2019-04/Cost%20and%20contributions%20from%202015-16%20factsheet%20%20%28Officer%29%20-20190328-%28V4%29%20.pdf
Great video - just the clarity I was looking for. I have a quick question though. I have a 2015 pension scheme joined last year. I have a small pension pot with another provider from a previous non-NHS employer. I am allowed to transfer this in, in the first 12 months but am not clear on how this would help the final salary. Is it worth transferring my other pension into the NHS pension and how would this help my final salary calculation please?
Hi,
Great videos, and really informative.
I'm currently in the 2015 scheme but opted to buy back added years 1 month before March 2008 deadline.
I've been told that these added years will continue and I will receive the benefits from this scheme.
I've had a look through my Total Rewards Statement, have you any advice on how to read this to give me an idea of what to expect and do I need to be squirelling a little more away?
Thanks
Kieran
The one off lumpsum.. can you do a quick video to see how this works out as part of althe 2015 scheme
MPAVC vs SIPP? Any idea of pros and cons? Thanks
Great video, is it worth contributing more to the scheme (I’m currently on 2015 and aged 50), or should I put my money elsewhere?
Hi choppysocks, it is definitely worth considering, as Final Salary schemes are a great retirement tool. Two things you should definitely consider however, is figuring out what your expected Final Salary could look like when you reach normal pension age and the age at which you can access this scheme, (currently following State Pension age).
If your happy with the expected Final Salary (i.e. without contributing more), it might be worth diversifying your money somewhat by putting it in other areas where your not penalised for accessing your money earlier on - Investment ISAs or SIPPs are just a few examples.
@@FinancialMadness thank you, I'm new to investment so will binge watch your videos and do some number crunching
@@choppysocks Sounds amazing! Please do reach out to me if you have any further questions :)
Thank you for the video. Very informative
Thank you! I am glad you found it helpful :)
hi, informative videos thanks you, I am a deferred member and want to access my statement so I can decide on retirement yet, how do i do this. i remember access an account but no idea how to find that now .
Hi Mandy,
Thanks for your question. As I have not worked for the NHS, I unfortunately am unsure of how the statement process works. From what I understand you can access your pension statement through a portal. Perhaps you can raise this with the NHS Pension team themselves, if you are unsure how to access it. Contact details are here: www.nhsbsa.nhs.uk/member-hub/contact-nhs-pensions-members
Hi, thanks for explaining the NHS pension to us, I’ve always found it very confusing. I’m one of those people that has all x3 schemes, as I have had breaks in my career where I didn’t pay into my nhs pension which in hindsight I shouldn’t have done. I am now on the 2015 since 2010, but the 1995 and 2008 are still there, I think just frozen. Is there a way of combining them? Is it advisable?
Hi Rose, Thank you for your comment, I am glad you found it useful.
It is possible to do a transfer between schemes, however according to the booklet (link below) , to be eligible to this you have to apply for the transfer within the first 12months of enrolling in the scheme. Seeing as you said you were in the 2015 Scheme since 2010, it does seem you may have missed the boat.
Transferring the benefits between schemes can get quite complex and without knowing the entire situation I can't say for sure which way would be better. As a first step, it might be good to speak with someone in the NHS (payroll/HR) and see if this option is available for you and feel free to reach me on IG or Email (links in my about me) and we can discuss further if you wish. :)
Info based from this booklet: www.nhsbsa.nhs.uk/sites/default/files/2020-01/Transfer%20Booklet%20%28V20%29%2001.2020_0.pdf
@@FinancialMadness thank you so much for your advice & time
No problem :)
Hi, thanks. I was on the 95 scheme and got moved over. I Plan to retire at 60 (I'm 52 now and have 26 years years paying into the nhs pension). Does this mean any money I have paid into the 2015-2018 schemes will be able to be taken at the age of 60?
I’m buying additional pension at the moment. Can I ask if I have it set up to come out each month for say10 years purchasing £6000- does that mean I earn an extra £6000 a year in my pension always or just the 10 years
How does this work? Any update pls
Great explanation. Love you man.
Much appreciated!
Hi
Thanks for explaining the pension.
Is there any way that one can nominate a second beneficiary along with spouse.
God forbid if the both parents die in an accident then how their pension can be distributed to children?
Hi qasim1971,
Apologies for the delayed response.
Thank you for the feedback, I am glad you found it helpful. With regards to your questions (which is an excellent question by the way).
It does seem you can nominate several individuals, given that the NHS Pension website does state the following: "In the event of your death, the NHS Pension Scheme may provide for your family or a person you have nominated.". (With family being the key word here). It is worth discussing with the provider how to do this.
Is it possible to buy additional "units" for 2008 & 2015 schemes and take pension early (say at 60 but obvs a reduced payout) or would the reduction wipe out the benefits ?
Hi, Thanks for commenting.
No this isn't possible. You can only contribute more to schemes with an active membership. It sounds like, in your case that would be the 2015 scheme :)
I'm trying to figure which way if any is better for a 30 year old member with 6 years service to increase their contributions (2015 scheme)? My aim is to retire early and do one or two days if possible/financially efficient. I'd like to do this by 60.
You can definetly make use of the pension planning tools that the NHS offer that provide an estimate of what your expected Pension Income would be. As I am not an employee of there's, I cannot pinpoint you directly, but I do know they exist.
As the 2015 scheme cannot be accessed before age 65 (at a minimum, without penalty) it might be worth exploring other products to help fund your years from 60 to when you can claim your NHS pension.
As you said the range of additional payments range from £250 - £5000 am I correct in saying that is the amount per year?
ie if I have been an NHS employee contributing for 17yrs say I choose to make an additional payment of £2000 that becomes 17 X £2000 equalling £34000.
HI, do you have any reliable knowledge of the 2015 police pension scheme. Interested in the additional voluntary contributions. The pensions website has an excel calculator for AVCs but is difficult to understand. Many thanks.
Hi Steven, it's not something I have actually looked into yet.
Let me take a look and get back to you
@@FinancialMadness Thanks so much. Here in Scotland there was a recent ruling where officers can leave with 25 years service as long as they were 50 years old. The whole age discrimination thing is not resolved in my opinion. Very confusing.
@@DreStev Thanks for the insight. Leave this with me and I will do my best to clear this up. Might even make a video out of it, as it may help others too.
Will get back to you by the end of the week 😊
Hi Steven, apologies for the delay. I had the flu last week and wasn't able to finish of the video. I've just released the Police Pension video which hopefully answers your question. Thanks for commenting th-cam.com/video/uu7EW_SkmHE/w-d-xo.html
@@FinancialMadness Thanks Kozan, will watch this now. Hope you get lots of likes. I will definitely get value from this. Thanks again.
What happens if one has multiple NHS jobs and each Job takes off money towards NHS pension. Is the cumulative earnings added up to determine pensionable pay? How do they determine which tier of contribution you are in if one of your extra NHS jobs is variable earnings ie locums ?
Do you advise people on financial stuff on a 1-2-1 basis?
Hi. Unfortunately, that is not within my remit as I am not a professional financial advisor.
But I am happy to answer any questions you may have, you can comment here or email me at financialmadness1@gmail.com
Hi, Thenaks for the great videos!
I have three quetions :)
1. So, if I am under 2015 (or 2008), which additional contribution should I choose first? There were two in vedeo... Also, which is better to do lump sum or monthly... for the total and tax etc?
2. When I started working at the first NHS organisation, I was under 2008, but I have changed organisations a few times with a few weeks or months gaps... and we were originally told to switch from 2008 to 2015 automatically unless some of us were under special conditions such as our retirement age is coming soon etc...(something like this...)
However, my ex colleague was just telling me there was a recent court case about to choose 2008 or 2015 at retirement... are you aware?
I am thinking to ask payroll or financial advisor in my trust if any. Or do you know where I can check my NHS pension forcast...?
3. I am originally from abroad (not Commonweath or EU countries)... IF I decide to go back my country far before retirement age e.g. 54 years old after 16 years contribution to NHS pension, what is happening to my pension? Can I receive it via the UK bank when I reach state pension age (67 to me)?
Mant thanks
Hi Aji,
1. You can only make additional contribution to the scheme you are currently contributing too. If you are on the 2015 scheme but you have a legacy 2008 scheme from the past, additional contributions can only be made into the 2015 scheme.
With regards to lump sum vs monthly - it really comes down to affordability. Personally, if there is no difference in price, no need to stress yourself out by paying a large lump sum as the opportunity cost of putting the money elsewhere is higher (something to think about)
2. Not sure what the question is. But yes, when the 2015 Scheme was introduced most members were automatically switched onto this scheme. Protection was given to members which met a specific condition, these protection was known as "Full Protection" (meaning you will never move to the 2015 scheme), or "Tapered Protection" (meaning you will eventually move to the 2015 scheme, when this happened would be down to your age). By April 2022, all legacy schemes will be closed and the 2015 scheme will be the only active scheme. I have planned a NHS Pensions Q&A video, which will be released in the next week or so, where I talk more on this. Stay Tuned... :)
3. You will have two options available to you, if you decide to move to move overseas. Once you reach the normal pension age or minimum pension age you can:
a. get the NHS Pension to pay directly to your overseas bank account, if its eligible. Application forms per country can be found here:
www.nhsbsa.nhs.uk/member-hub/applying-your-pension
b. If this isn't an option, you will have to set up an UK Bank Account just for the money to deposited, and you can then transfer this over to your overseas account.
Please be aware, that oversea transfer typically come with fees and taxes, so you may need to think about how best to do this, to avoid paying to much in fees
I hope this helps. Let me know if you have any more questions.
@@FinancialMadness Thanks so much.
P.S. In my comments, I was talking about www.nhsbsa.nhs.uk/february-2021-update-government-changes-public-service-pension-schemes
@@aji_noriko1576 Thanks for sharing the link.
Yes that what I tried to provide on point 2. But I will go into more detail in my next video. If you still have questions then, please do let me know :)
@@FinancialMadness 😅
This is really useful and understandable.
I was wondering if you had any opinion on whether if would be be better to pay for say the ERRBO or AVC or just invest that money in a SIPP which you can take out at the minimum pension age and then wait till state retirement to get the NHS pension. I can't work out which would be better to do, maybe all of them?
For addition pension contribution , does employer contribute the same amount aswell or not?
I don't think so. NHS pension dies with the individual so cannot be passed to dependants older than 23 years old.
Great video
Thank you! That is very kind of you to say 🙂
Great video , it all makes sense now , I’ve been in the nhs for 15 years but only just joined the pension , after doing my working outs , it means on my current band 5 pay of £32934 in 10 years if I leave nhs at 60 i will only get £775 a year or £64 a month , hardly seems worth it when I’m paying in £ 267 a month , if I’m right it makes more sense just to save the £267 a month for 10 years which will give me a lump sum of £32040 , none of the nhs pension people can explain how it works , but you can , many thanks
Pension is compounding so you need an estimated projection as for example £775 in 2023 will be worth more 20 year from now.
Hi gazfire1
Apologies, for the slight delay in response. But I am not sure your calculations are correct!
I did a quick calculation on my end. After contributing One year to the Pension at a salary of £32,934 your Pension benefits will stand at ~£610. (Assuming this on the 2015 scheme)
If your salary is the same in the next 10 years, and you continue to contribute, your Pension Benefits would be ~£7,154.85. Which will be ~£600 a month
@@FinancialMadness How did you get 7154.85 instead of 6100 pounds per year which is 508.33 pounds per month
I am currently getting my NHS Pension since the age of 50 however I understand that been as part of my payments where op out (which I was not aware of) from the ambulance service having contacted the state pensions people who advise there is a shortfall if I had not asked them I would not be aware of.
If you can let me know it would be helpful.
Hi there, I am really sorry. But I don't fully understand your question - do you mind repeating? Thanks
@@FinancialMadness Hi
Many thanks for your reply, I worked in the anbulance service for 35 years and took my work pension at 50 so I am aware of the reduced work pension.
I have been informed when I contacted the state pension people, that for a period of time my state pension had been out sourced (unknown to me) and there is now a shortfall, which means I won't get the full state pension when I reach the countdown age of 66.
Is there somethink that I can do about this.
@@OO-ex5iq Apologies for the late reply.
Hmm this sounds interesting. I have read about contracting out for Additional State Pension (or S2P, previously called SERPS), but I am unaware of this happening to the main state pension.
Happy to looking into this more closely. Do you mind just providing your date of birth. Happy for you to reach me on my email if you prefer: financialmadness1@gmail.com
Do you offer personal advice for a fee?
Hi there. No I don't. I am not in a position to advise on an individual's investment decisions.
However, if you do have questions from an educational perspective, I am happy to answer them. Feel free to drop me an email at financialmadness1@gmail.com
Thanks
I have been told by NHS Pensions that I cannot buy additional contributions to my 1995 scheme. Is this correct
Thank for the question.
There are many ways you can contribute extra to your NHS Pension, but not all the ways are applicable to the 1995 Scheme. Do you know which type of additional contributions you requested? (i.e. Additional Pension, MPAVC etc..)
@@FinancialMadness sorry I don’t, I just aske to make additional contributions and was told that it was closed to new contributions.
@@billynichols6976 Hmmmm...how weird? It might be worth following up with them again and finding out.
I just double checked and I can't see any reason why you wouldn't be able to contribute more.
Looking at the latest 1995 Scheme Guidebook (link below), on page 11, it shows you do have options to increase your pension contributions.
www.nhsbsa.nhs.uk/sites/default/files/2019-03/1995-2008%20Members%20Guide%20%28V22%29%20printable%2002.2019_0.pdf
@@FinancialMadness @ billy nichols www.nhsbsa.nhs.uk/sites/default/files/2021-04/Added%20Benefits-Additional%20Pension%20factsheet-20210423-%28V9%29_0.pdf this info seems to suggest that you can't add to 1995 scheme if you have transitioned
'You can only purchase additional pension from the Scheme that you are an active
contributing member of. Therefore, once you have transitioned to the 2015 Scheme you
may only purchase additional pension to increase your 2015 Scheme pension. It is not
possible to purchase additional pension to increase benefits from the 1995 or 2008 Section
once you have transitioned'
@@isobelhinton2003 Thanks for raising that point. It is a point definitely worth mentioning!
Assuming @billy nichols is an active member of the 1995 scheme, I still can't see why he has been rejected to contribute. Unless he in actual fact has transitioned to another scheme.
Hi I have 2015 nhs pension, paying 9% plus bought additional pension paying £146 every month for 20 years
How much would that get me
Hi Ali,
Unfortunately this isn't enough information for me to go on.
1) Your MAIN NHS Pension, is based on your Salary not how much you are contributing
2) Your Additional Pension is based on the investment option you or your provider has chosen. You should be able to see a statement of the current benefits online.
I hope this helps.
@@FinancialMadness Is the Additional Pension also guaranteed since one has to purchase in the multiples of £250s described in the video as an increment to the main NHS pension benefit per annum? Using the information, One unit of the £250 APS actually costs 3470 pounds as lumpsome. 6565 pounds which is the maximum will cost £116,594.40. How does this compare to SIPP OR Index funds globally?
you can only buy an ERRBO within 3 months of joining or transitioning to the 2015 pension, which is stupid
how do you do that?
Are you able to elaborate?
Bravissimo... Interessante
Grazie Millie!
Like 😊
Now I wonder why such a young man has taken so much interest in pension schemes? Can we look forward to some Hip-Hop vids from you when you're 70?
Hahaha, truth be told I have a close friend who is a paramedic and works for the NHS and he asked me to explain the Pension Scheme to him. I then turned it into a video, not expecting to get much response hahaha (how wrong was it).
Not a massive fan of Hip Hop so doubtful, maybe some reggaetón :P
I think it’s disgusting the nhs pension matches the state pension age. I certainly won’t be able to do my job now at 67
the sound is not good I am quite disappointed