Get advice on your NHS pension options
Doctors, nurses and other healthcare workers entitled to an NHS pension may need advice on their defined benefit scheme to maximise the benefits and avoid unnecessary tax.
Find your specialist adviser What you need to know about your NHS pension
NHS workers are entitled to be members of the NHS pension scheme. There are three different sections of the NHS
pension schemes, but all provide what is known as a defined benefit pension. This means that the pension will pay you
a guaranteed income for life, starting from your official retirement date.
pension schemes, but all provide what is known as a defined benefit pension. This means that the pension will pay you
a guaranteed income for life, starting from your official retirement date.
Is the NHS pension scheme good?
The NHS pension is more generous than most private sector pensions. Furthermore, defined benefit schemes in general provide more security than other pensions, as the money can never run out.
The NHS pension has been revised, so more recent members may receive less generous benefits than before. How your benefits are calculated (and when you start receiving them) will depend on whether you accrued those benefits in the 1995 section, the 2008 section, or the 2015 section. Nevertheless, when compared against workplace pensions in general, it remains outstanding value.
The 1995 and 2008 sections are both ‘final salary’ pensions. The 2015 section is an ‘average salary’ pension, where your income is based on a portion of your average salary over your NHS career. In some cases this may result in the 2015 section being less generous, but not necessarily.
What are the benefits of getting advice on my NHS pension?
Due to how the NHS Pension is calculated, it can be hard to predict exactly how much income you stand to receive from it, and from what age. In particular, if you were a member of a previous section of the scheme, you may be able to take your pension earlier. Similarly, you may be eligible for ‘protection’ of your benefits under that section of the scheme, which could mean a higher pension.
There are so many factors involved that it can be hard to know exactly how much you’ll get. You may also face questions such as:
- Will my pension be enough for me in retirement?
- At what age will I start to receive my pension?
- Could I take my pension earlier and how much would it be?
- Can I increase my NHS pension by making extra contributions – and should I?
- Am I paying too much into my NHS pension, taking me over my pension allowances?
The last point is particularly relevant for higher-earning NHS workers, who may find themselves exceeding their annual or lifetime allowance and facing an extra tax charge.
Understand your pension
Advice can help you get to grips with how your pension works and how much you can expect to get.
Save tax
Your financial adviser can help you reduce the risk of tax charges if you’re close to your pension allowances.
Improve your retirement
Work out how much you might need in retirement, and take action now to ensure you get it.
Where can I find advice on my
NHS pension?
NHS pension?
Look for an independent financial adviser who specialises in NHS
and public sector pension schemes. You can find an IFA with this
specialist area of expertise by customising your Unbiased search.
Find your specialist adviserand public sector pension schemes. You can find an IFA with this
specialist area of expertise by customising your Unbiased search.
Frequently Asked Questions