So many pensions, so little time!

DrPhil

Distinguished Member
Complicated one possibly, trying to figure out what I'm entitled to when retirement comes calling...

I work in the UK for the NHS and have been contributing to the superannuation pension for 11 years. I have been working in total for 14 years total in the UK.

I also worked for about 4 years in Ireland when I was younger, and for the past 6 years I have had a small income in the south too (from rent received).

I've been trawling the internet looking for answers but only finding parts. The fact that I have 3 potential pension incomes complicates most answers that I find.

On top of all that, I hope to retire early (hopefully 50, I'm 34 now).

  • So how much is my NHS pension reduced by if I retire early?
  • Am I still entitled to UK state pension on top of the NHS one? I'm assuming that this pension is only available at 65, no option to go early?
  • Do I qualify for the Irish state pension too or only in a "top-up" capacity if it is higher than the UK one?

Any insight from you folk? Or if I need to call someone, who? :confused:
 

Phil57

Well-known Member
Your UK state pension is unrelated to your NHS pension.
The state pension cannot be collected before the state pension-retirement age, in your case that is very likely to be beyond 70 years of age (you could seriously consider 75 being more realistic!!)
 

EarthRod

Distinguished Member
You still have 26 years to go before reaching the age of 60. Assuming you stay in the NHS you will retire from the NHS on (about) full pension at the age of 60. IMO focus on that and don't think about early retirement for at least another 10 years.

Forget about the state pension until you are in your late 50s, then look at the situation. As Phil57 says - by then the chances are 75 will be the age state pension kicks in!
 

DrPhil

Distinguished Member
No harm in hoping! It's all early speculation at this stage but it gives me something to aim for.

Am I right in thinking that even with an early retirement from the NHS, I can't start to pull in my reduced pension until age 55? And don't see any sign of the state pension until at least 70 (although it's 66 in Ireland).

If I quit working at 52 (the wife 50), my calculations/projections are based on the amount of money needed to live from 52/50 until 55/53 when my NHS pension starts, then from there until 57/55 (her NHS pension starts), then a big gap until 70/68 when my state pension starts.

That magic figure is £180,000.

Minus current savings, minus 2 x NHS lump sum leaves us needing to save £5,000 per year. That IMO is achievable on current income and expenditure. Plus I have a second property. By the time retirement comes calling it will be mortgage free and either an ongoing income, or a lump sum if sold. Who knows what property values will be like, but right now it's worth probably €60k.
 

blue max

Distinguished Member
No man of a mere 34 years of age should be thinking of retirement. Good grief man, you're at the prime of your life! You should be throwing yourself into your career and having a blast.

Of course, putting something away for the future is always a good idea, but planning your life to start at retirement is too depressing to contemplate :)
 

DrPhil

Distinguished Member
I believe you should work to live, not live to work.

Maybe some have rewarding enough jobs and are able to enjoy the ride but for me, while I wouldn't say I hate my job, it's just a means to an end. As soon as the time comes that I can fund a comfortable lifestyle without the daily grind of work, I'm off.

It's not a case of life starting at retirement either. I have a great life now. I've travelled quite a bit of the world, I have my address very happy marriage, my (within reason) dream house, a nearly new car etc. But I can enjoy all those things even more if/when I'm not being distracted by 40 hours of work every week!
 
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Ruperts slippers

Distinguished Member
Complicated one possibly, trying to figure out what I'm entitled to when retirement comes calling...

I work in the UK for the NHS and have been contributing to the superannuation pension for 11 years. I have been working in total for 14 years total in the UK.

I also worked for about 4 years in Ireland when I was younger, and for the past 6 years I have had a small income in the south too (from rent received).

I've been trawling the internet looking for answers but only finding parts. The fact that I have 3 potential pension incomes complicates most answers that I find.

On top of all that, I hope to retire early (hopefully 50, I'm 34 now).

  • So how much is my NHS pension reduced by if I retire early?
  • Am I still entitled to UK state pension on top of the NHS one? I'm assuming that this pension is only available at 65, no option to go early?
  • Do I qualify for the Irish state pension too or only in a "top-up" capacity if it is higher than the UK one?

Any insight from you folk? Or if I need to call someone, who? :confused:
My wife works for the NHS, we asked for a statement a couple of yrs back with a projected pension worth.
 

booyaka

Moderator
There are 2 parts to the NHs pension scheme 1995 section and 2008 section - each part has a different retirement age (60 and 65). generally if you retire earlier than the scheme would normally , it's at the discretion of the trustees and also usually subject to fairly hefty actuarial reductions in lump sum and income. Basically it's ain't worth while!

Think this is fairly accurate document that should cover most of the stuff you want to know

http://www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/SD_GUIDE_COMPLETE.pdf

Also you can get a projected quote based on current salary/earnings etc at 60/65 from NHS pension if you ask them. As others have said - I'm all for planning for retirement but at 34, don't worry about it just now.

State pension is projected to go up to 67 in 2026. This is still to be confimed but likely to happen - zero option to get this early. AS others have said - State pension is unrelated to your NHS pension.
 

FZR400RRSP

Banned
You say you have a magic figure of £180k and you've based what you'd need to put away on that.
Remember that any decent pension should double in value every ten years (roughly)
So maybe you'll reach that £180k without increasing contributions as much as you think.
What you do with that £180k also makes a helluva difference.
I intend to buy rental properties with at least some of my pension pot.
As an example, my BIL bought a house for £130k that he rents for £1450 a month to 4 x students.
That's giving him an income of £17400 a year (before tax) on £130k.
You couldn't hope to get near that return from £130k any other way.
And, of course, he still has an asset growing in value.
 

IronGiant

Moderator
What they do in some schemes is reduce your pension for every year you retire early. 4% a year is a typical figure so you'd lose 48% of your pension.
 

Mark F

Active Member
The minimum retirement age of 55 is increasing to 57. This was one of the changes announced in last month's Budget. The minimum age will then be linked to State Pension Age and so will increase in future. So, for someone age 34 now I wouldn't be surprised if the minimum age come their retirement will be around 60.
 

nheather

Distinguished Member
The minimum retirement age of 55 is increasing to 57. This was one of the changes announced in last month's Budget. The minimum age will then be linked to State Pension Age and so will increase in future. So, for someone age 34 now I wouldn't be surprised if the minimum age come their retirement will be around 60.

God I seem to be chasing moving goalposts. I was within sight of the 50 year threshold a few years ago. Then they moved it to 55. So now in sight of the 55 threshold and guess what, they're moving it again.

Missed that part of the budget.

Panic over - just googled and it goes to 57 in 2028 so early retirement is still on the cards.

Cheers,

Nigel
 

booyaka

Moderator
Panic over - just googled and it goes to 57 in 2028 so early retirement is still on the cards.

Cheers,

Nigel
it was hidden away in the detail - it wasn't actually announced during the budget
 

nheather

Distinguished Member
I can handle not being able to receive my pension until 55 or even 60. But I don't understand why they would freeze it until 67 just because I stop working early.
It's because you can't retire early until you are 55 or older.

So if you stop work before 55 you are not retiring just giving up work.

So when you hit 55 you are no longer working for that company so cannot apply for early retirement.

Instead you must wait until the pension matures - someone said that you have two elements, one at 60 and one at 65. The 67 is a red herring because that is related to state pension and nothing to do with your occupational pension.

Note, even at 55 you might not have an automatic right to retire at 55 - that is down to the terms of your pension. Otherwise, your employer and pension provider must agree to let you retire early.

As an example, my scheme is made up of two parts, one maturing at 60 and one at 65 - however I can't take them seperately. I can either retire at 60 and take a hit on the 65 element or I can retire at 65.

My scheme also currently allows me to retire at 62 without penalty but I don't expect that to still be in place when I get there.

The 55 is an HMRC thing. It says that it will permit you to take early retirement, but as I said that isn't an automatic entitlement, it's down to the employer and pension scheme to agree - all HMRC are saying is that they are okay with it if you are given permission.

Cheers,

Nigel
 
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SevloW

Distinguished Member
I can only suggest you talk to a qualified Pension Advisor, that way you will get the information you require.

I was made redundant back in 2009 at 56. My pension fund with my former employee did not allow me to access my pension until I was 60. I moved the pension which gave me access to it immediately, in that I could take 25% tax free lump sum and also have income from it either weekly, monthly or once a year.

My private pension, along with my Armed Forces pension is my only source of income these days.

These people may be able to answer some of your questions.

Home - The Pensions Advisory Service (TPAS)
 
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DrPhil

Distinguished Member
Complicated...

Although I'm told that from next year the NHS lump sum and pension will be based on your entire career, not just your last few years of service. That would mean I could drop to part time, as low as possible, so almost retiring but protecting my (hopefully) early retirement.

I'll speak to a professional and start planning.
 

IronGiant

Moderator
As a result of this thread i looked into my deferred University pension and apparently I could retire next year at 55 even though I stopped paying into it some years ago. It would however take a 40% hit by claiming it 10 years early. If I wait until I am 65 I'd get a lump sum of ~30K and a 10K pension, if I retire next year I'd get an 18K lump sum and a 6K pension. The mathematically inclined amopng you can probably tell me what age I'd have to die at to break even...
 

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