What we do
NHS pension SCHEME
NHS pension schemes are a specialist area, so it pays to speak to someone about pension planning advice, who has technical experience.
We’ve helped a number of different clients with pension plan advice, to navigate their way through the complexities of the NHS pension scheme. This looks like helping them to feel clear on which pension scheme applies to them, what they’re entitled to, and when they can access it.
What is the NHS pension scheme?
When you start employment at the NHS, you will automatically be enrolled in the NHS pension scheme. The NHS pension scheme is one of the benefits of working for the NHS, particularly the challenging situations NHS staff can face in their line of work.
The amount an NHS worker pays into their pension can vary depending on how much you earn. Your pension contribution is deducted off your gross pay, meaning less of your income is taxable.
How much will you contribute to your NHS pension?
Workers of the NHS, both full-time and part-time workers pay a percentage of their gross pay into their pension pot each month. Employers then top this amount up with their contributions. As mentioned above, you will receive some tax relief, as a result of your contributions.
What part of the NHS pension scheme do you belong to?
The NHS Pension Scheme has gone through many changes over the years and it can be confusing which part of the scheme you actually belong in. Each part of the pension scheme has slightly different retirement ages and accrual rates, so getting to know your NHS Pension Scheme a little better means that you can plan your retirement with more clarity.
On 1st April 2015, there were major changes to the NHS pension scheme which meant that the scheme and deal you would get when you would retire, would now depend on when you were enrolled into the scheme.
The 3 different ‘parts’/ sections of the scheme
There are 3 different sections to the scheme, the 2015 section, 2008 section & 1995 section. If you joined the scheme after 01.04.15, you are most likely to be in the 2015 section, but some members of the 1995 or 2008 section have also been moved into the 2015 section. Pension plan advice can help you locate which section of the scheme you are a member of.
The 1995 and 2008 sections of the NHS pension scheme pay a final salary scheme based on how much you earn when you retire. Whereas, the 2015 section, pays an income based on your career average earnings. The 2015 section is thought to be less generous than the older sections.
Pension scheme protection
Some members of the NHS pension scheme qualify for ‘protection’, meaning that they will remain members of their current section of the scheme indefinitely or move to a different scheme in the future. The level of protection you can qualify for is dependent on your age and when you joined the scheme.
There are 2 types of protection:
If you’ve been contributing to either a 1995 or 2008 section, you may benefit from full protection, which will allow you to remain in the more generous final salary and section of the scheme.
Similarly, if you’ve been contributing to either a 1995 or 2008 section, you may benefit from tapered protection. This scheme means you will still move over into the less generous final salary but you will stay in the more generous final salary section for longer.
Pension plan advice at Oakworth
There is a lot to consider when looking at your pension plan. Our experienced pension plan and NHS pension plan advisors can help you understand how much money you can expect to receive at retirement, what you are covered for and all your options surrounding this.
In your pension plan we’ll look at how much tax relief you can expect, how much your employer will be contributing, when you should look to retire and collecting your pension pay. At retirement, you will also need to make a decision regarding whether to take the higher income or increase your lump sum. We are able to discuss these options with you to make sense of things.
We help people by looking at your additional financial arrangements to make sure that you’re not adversely impacted, for example, by paying too much tax by exceeding Annual Allowance.
Get in touch today to discuss your NHS pension plan and how we can help you get the most out of your retirement and pension.