Answering NHS Pension Questions | Opting-Out | How to Claim | Moving Abroad etc.

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I receive a lot of questions on my NHS Pension Videos. As some a lot of the questions are repeated or just questions that I never really thought about in the first place, I thought it would be helpful to you to have a video where I answer these questions for you in one place. I will speaking about:
- Opting out of the NHS Pension?
- What happens to your NHS Pension if you move abroad?
- Can you change your NHS Pension Contributions?
- Is everyone moving to the 2015 Scheme in April 2022?
- Can you claim the State Pension
And many more.
Chapter Information (NHS Pension FAQs):
0:00 Introduction
0:43 1. Can you opt out of the Scheme?
1:09 2. Do you get your money back if you opt out?
1:43 3. What if you leave the UK?
2:58 4. Can you reduce your NHS Pension Contributions?
4:43 5. Where do yours and your employers contributions go?
7:05 6. How to view your current and estimated Pension Benefits?
8:01 7. How to access your NHS Pension once you have reached retirement?
9:14 8a.What happens if you die before or after retirement?
10:16 8b. What happens if you die and you have dependant children?
11:18 9. Do you need to nominate your Spouse or Civil Partner?
11:41 10. What is the minimum pension age?
13:04 11. Can you claim both the NHS Pension and State Pension?
13:37 12. What happens when I leave the NHS?
15:10 13. What happens if you become Terminally Ill?
15:36 14. Why did most members move to the 2015 Scheme?
17:31 15. What is happening to NHS Pensions in April 2022?
▶NHS: Bank Payment Details if you live abroad:
www.nhsbsa.nhs.uk/member-hub/...
▶NHS: Can you have your NHS Pension paid into an Overseas Bank Account?
nhsbsa-live.powerappsportals....
▶NHS: Employee Contribution Rates Before and After Tax?
www.nhsbsa.nhs.uk/sites/defau...
▶NHS: Total Reward Statement and Annual Benefit Statement Overview (RU-vid)
• Video
▶NHS: Retirement Guide
www.nhsbsa.nhs.uk/sites/defau...
▶NHS: Deferred Benefits Claim Form (AW8P)
www.nhsbsa.nhs.uk/sites/defau...
▶NHS: NHS Pensions Partner Nomination Form (PN1)
www.nhsbsa.nhs.uk/sites/defau...
▶NHS: Remedy Period and Changes from April 2022
www.nhsbsa.nhs.uk/february-20...
www.pkf-francisclark.co.uk/bl...
DISCLAIMER - Any advice or (statements perceived to be advice) given in this video and any other videos on my channel are for information purposes only, and does not act as financial advice. Your are fully responsible for your financial decisions. If you are in need of Financial Advice, please seek out a professional advisor. If your are unsure on how to do this, feel free to reach out to me and I am more than happy to guide you.
#NHSPension #NHS #2015Scheme

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25 июл 2024

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Комментарии : 145

@jaimediack 2 года назад

Wowzers, so glad this is rewatchable, so much info in here, thank you so much for making these videos for NHS staff.

@FinancialMadness 2 года назад

Thank you for the comment Jaime. This is really great to hear

@mohsinkamal9550 3 года назад

Thank you so so much for clarifying on so many questions that I had in my mind... No one explained this with such a clarity.

@FinancialMadness 3 года назад

Thank you for the kind comments @Mohsin. I am glad this was helpful

@mhairithompson9513 2 года назад

Thank you so much for this information. I've been in a panic about my pension. This has clarified matters greatly.

@FinancialMadness 2 года назад

You're most welcome. I am so pleased you found this video helpful :)

@immyraja5925 3 года назад

Thanks a lot for this video. I recently tried to transfer my standard life pension into my nhs pension. They have made it so hard.

@aritheradjei4185 Год назад

Well done you really explained it very well to my understanding thank you ❤

@FinancialMadness Год назад

Thank you! I am glad it was helpful!

@joyceayanful2468 2 года назад

Thank you so much you have help me a lot I just received my pension statement just this week and found I was transferred to the 2015 scheme from the 1995 scheme without my knowledge.

@FinancialMadness 2 года назад

Thank you for your kind comments. I am glad you have found this video helpful. I am surprised that no comms were sent to pension holders on the older two schemes - that seems very badly managed :/

@carmelamor8667 Год назад

Thank you so much, very helpful indeed.

@FinancialMadness Год назад

You're very welcome! I am glad it was helpful

@beshiesbest 2 года назад

Thank you, you answered my questions.

@FinancialMadness 2 года назад

Thanks I'm glad you found it helpful

@joymilligan1659 Год назад

Such good information- Thankyou

@FinancialMadness Год назад

Thank you, I am glad you found it helpful :)

@parisahhussain9663 2 года назад

You've managed to answer my question in this video!

@FinancialMadness Год назад

Thanks, I am glad it was helpful :)

@steffysnowy614 10 месяцев назад

Thank you very good explained.Can you tell us is it better to contribute more to a State pension or to delay the State pension.

@HK-os8tj Год назад

Just came acrossed this video, super informative. Thanks for sharing all the information re NHS pension. By any chance is there a video where you are comparing NHS 2015 pension (Annuity) to what's available in the market? I am aware the benefits are different so the net pension take home will be different and also it will be vary with private (Ex Legal & General) as risks are involved with investment. With the basic research I found private one offers twice the take home compared to NHS, will have to do bit more research here. If there is no video, will be great if you can do one as this video is super informative :-) . Thanks

@lm6675 2 месяца назад

could you explain the investment bit ,, would be helpful

@peterbugg3943 3 года назад

Thank you so much, so clear and well explained, especially the part about what is happening in 2022- I am one of the people with full protection from the 1995 scheme- affected by the anti-age discrimination (McCloud) ruling. This really explained it all! It is a bit complex!

@FinancialMadness 3 года назад

Thank you! Yeah I received a lot of questions on this topic and the whole debacle is confusing. Glad to hear it made sense :)

@choppysocks 3 года назад

I've never heard of the age discrimination thing until this video, and I'm still a bit confused. I was automatically changed to the 2015 pension, how would I know if I'm eligible?

@FinancialMadness 3 года назад

@@choppysocks Hi, if you were previously under the 199/2008 and were automatically transitioned to the 2015 then it does sound like you would be eligible. I have put some links in the bio of this video under "▶NHS: Remedy Period and Changes from April 2022" for more information :)

@telemioke2405 2 года назад

Thanks for the video. My question is say you leave the nhs pension scheme (for less then 5 years) and join a different pension scheme. If you rejoin the nhs can you transfer that pension into your nhs one

@daldeleon 3 года назад

Can you help fill up retirement benefit claim form AW8 specially from 12.1 questions to 12.6

@ASzulesznoAnyuka-ww8nm 6 месяцев назад

Hi Kozan! Thank you for a great video! You mentioned that one can only opt out and get their money back during the first two years of joining and also one will get any amount of pension if they contributed at least two years. I am trying to find more info on this, but some of your links have expired. Do you have any idea where I can look into this further? Thank you

@namitbansal9895 Год назад

Thank you so much for the video. I just had one doubt. Say you worked in the NHS for 6-8 years and then moved abroad. You contributed for the NHS pension scheme during that period What will happen to your money and when will you get it?

@nickaskham3055 Год назад

Brilliant video. Thank you. I have 10yrs in 1995 scheme but no longer work in the NHS. If i get to 60 but do not need the money at that time can I defer taking my pension? Will this increase my pension payments when I do take it and is this an efficient way to increase my pension later on? Thank you

@ChrisM541 Год назад

Thank you for this, much appreciated. Can you tell me what would happen to my NHS pension if, at 57 years old (and 35 years full time NHS), I decided to work part time e.g. 3 days per week? I opted to remain in the 1995 section, though understand that from July this year I will be contributing to the new CARE pension system (plus have the 7 yrs 'remedy' choice). If the 1995 section is 'the best year from the last 3 years worked' and I work 3/5 days, would my pension end up reduced to 3/5?

@THACHYA 3 года назад

Thank you soo much for explaining everything ,now My knowledge of NHS pension rose to at least 75% from a 0%😅☺️☺️☺️ I was in a confusion whether to cancel it or not as most of my frnds cancelled it and Got the money back. I decided not to Thanks to you🥰

@FinancialMadness 2 года назад

Most welcome 😊. Comments really make my day. I am glad this video was helpful

@garycroft8213 3 года назад

Re. Moving abroad, I've been trying to confirm with NHS BSA that the NHS Pension is essentially a 'Government Pension' and always taxed at source regardless of where in the world you may eventually reside and subject to that country having a double tax agreement with the UK no further tax would be due. This in principal could be advantageous as the NHS pension could benefit from UK personal allowance whilst any other pension e.g. SIPP drawndown or income would be taxed in the country you are living in. I'm trying to get a formal answer on this but know anecdotally many overseas Brits report this is what occurs for UK Civil and Public sector pensions i.e. those paid by 'Paymaster General' aka HMG Treasury funded. Any thoughts on this?

@Vini_0294 6 месяцев назад

Thank you for the wonderful video! You've explained very clearly. I just had a doubt. Would I be able to withdraw my pension after I retire if I only contribute to the NHS pension scheme for 6 months and move to a different country. Or is it better to opt out? What happens to short term contributions? Would I be able to claim that back at retirement age? Thank you!

@princethomas13 Год назад

Thank you

@FinancialMadness Год назад

You're welcome, I am glad you found it helpful

@brijeshkakadiya 2 года назад

Thank you for this video. very informative. Few questions, how employer contribution works in the 2015 scheme? Does it increase your pot value? if not, does it matter what they contribute?

@FinancialMadness 2 года назад

Thanks for the question. Your contribution strictly comes from the Build Up Rate, The Revaluation Rate and the the length of service. Your Contributions and your Employers Contributions are to help fund the currently Retirees of the Pension Scheme. I hope this make sense. Check out my NHS Pension Explained video for an breakdown of this.

@electrickal1 2 года назад

As the 2015 scheme is new, does this mean any money paid in starts at zero and will take a very long time to mature into anything worth while?? I have 17 years service in the 1995 legacy scheme and have 7 years protection which takes me up to April 1st 2022 when I intend to stop paying into it. I really can't believe they can just stop a signed contract and move you against your will.

@kamran.i Год назад

Question: If you opt out of the NHS pension let's say after you have been member for 2 years or less you can get the money back right? And also do you only get the amount you contributed or does it have the added amount that your employer added too?

@kamran.i Год назад

How can one calculate the amount they will be getting monthly once the retire?

@shivshef56 2 года назад

Can you give me what is the best time of year to claim for best benefit. I am 65 in December and would like to give my notice.

@KAW134 Год назад

Can you take all of your nhs pension in one lump and transfer it to a private pension and draw down from that?

@munazzariqbal Год назад

Hi, what does section 1995 of 2015 scheme means. That`s what I am in.

@lyndataylor7355 3 года назад

I have at 2008 pot and a 2015 pot and have worked for 12 years so far. If I wait for my pensionable age of 67 how will my pension be worked out? ie Do they calculate on 2008 rules or 2015 rules? Hope you can help. M finding it very difficult to get a definitive answer. Love your videos btw. Always clear and helpful.

@FinancialMadness 3 года назад

Thanks Lynda for the kind comments. I am glad you found this useful. So if you have been involved in the 2008 and 2015 scheme, you need to think of them as separate pensions almost. The Final Salary you get from the 2008 section can be accessed from 65 and the amount you get is calculated using the 2008 criteria whilst you were an active member in the 2008. (Check out my NHS Pension Explained Video for more info on the criteria) As you are now an active member of the 2015 section, the final salary from this section can be accessed from your State Pension age, and the amount you get from here is calculated using the 2015 criteria against the time period you are an active member in the 2015 (Again, I demo this in the Explained video). Just in case the term 'active membership' is confusing, this simply means which NHS Pension scheme do your contributions go too. Remember you can only contribute to one scheme at any given time so this also means you can only be an active member of one scheme type too (at any given time). You should be able to view the current benefits in your Total Rewards Statement. Hope this makes sense, let me know if you have any more questions?

@kristinesilang6139 2 года назад

What if you opted out and became a deferred member(contributions was stopped but cannot claim the refund yet) then plan to opt in again then after a yr decided to opt out again, will I get a refund of the money I have in the pot?

@eb8625 2 года назад

Thanks for your helpful videos. I am an active member of the NHS pension scheme in both the 2008 and 2015 sections. I need to continue to work until I'm 66 and am wondering if I did not claim my 2008 pension until then, would this disadvantage me financially given that I won't be getting a year's pension benefit payments? Many thanks for your help.

@andrewharewood1801 Год назад

I have been working for NHS for 37 years and I started my pension 1986. I don.t know what happen to my 1995 scheme,. My 2008 froze and automatically open 2015 on april 2022. I try to phone and email the nhs pension for statement. I could not get through to them because they have been updating for 1 months. That time I try not apply for 2015 scheme because of my health.

@parisahhussain9663 Год назад

Hi - I was wondering if you can do a video on NHS Pension Tax?

@FinancialMadness Год назад

Think I may have already replied to this question. But yes, its on the list. Be sure to keep a look out :)

@nataliee7963 2 года назад

Thank you for this video. How would you transfer benefits to a nominated family member if you die and don’t have a partner or children?

@FinancialMadness 2 года назад

Hi Natalie, You would have to fill out the NHS Pensions Partner Nomination Form (PN1) to do this. Link is here www.nhsbsa.nhs.uk/sites/default/files/2019-02/Nomination-PN1-20190207-%28V10%29.pdf

@philipeardley4462 2 года назад

Thank you for the clear and concise information. Some of my pension (the vast majority of it) is in the 1995 scheme is based as you know on the average final three years of salary I paid in at a higher rate as was in a higher band approximately 15 years. I have another part of the pension in the 2015 scheme. Because of the potential career move, my banding will be reduced from a higher banding. I plan to still continue work in excess of three years. I have been advised by NHS pensions that there is a link between my salary and the 1995 scheme and taking the lower band pay will impact the benefits of the 95 scheme despite me paying in at a higher rate for a considerable length of time. Is there any way to protect those higher contributions or is it better to move everything into the 2015 scheme and taking a career average however given the retirement age of the 2015 scheme is higher? Your opinion would be very much appreciated.

@FinancialMadness 2 года назад

Hi Phillip. Thanks for the compliment and thanks for the questions. Apologies for taking long to respond, I have actually taken some time off from RU-vid and just now coming back and catching up with everything. Yours is a tricky one . The NHS Pensions advisor was right in what they said. Your current salary (/ latest 3 salaries) will always be linked to all Pension Schemes you are/were a member of, even if you are no longer actively contributing to certain schemes. Normally this works as a benefit as it typical for Members to find that their salaries are the largest once they reach retirement. So someone who was on the 1995 Scheme but is now an active member of the 2015 will still have their latest (and largest) salary counted to their 1995 Scheme too. However, this is the opposite for you. Now, before I go on, I do have to say I am not in a position to suggest which scheme is better nor should any of the below be taken as advice. You do raise a good point on the later NPA that is attributed to the 2015 Scheme, so it might be worth weighing up how much benefits you'll lose in your 1995 Scheme by continuing as you were vs how much you could earn via the 2015 Scheme? Alternatively, (and it is worth double checking this). If you have reached the NPA of the 1995 Scheme, it might be worth realising this Pension now (before your salary band is reduced). This should protect your latest 3 Salary Years. You can then return to work (please do some further research on this, but I do believe you will be required to leave the NHS Work Force for at least 24 hours for this to work). But once you are in a position to return and you have return, you can then actively contribute to the 2015 Scheme. Please note, that this will have Tax Implication as you essentially will be drawing two incomes at this point, but definitely worth investigating and speaking to a professional about this. I hope this helps. Let me know if you have further questions

@philipeardley4462 2 года назад

@@FinancialMadness thank you for time with your reply very much appreciated

@FinancialMadness 2 года назад

@@philipeardley4462 You're very welcome

@Rgsetters Год назад

Can you transfer a defined contribution pension from another company to the NHS scheme, and how does that work?

@FinancialMadness Год назад

Hi, yes you can. And depending on the type of pension you have with the NHS there are several avenues to take. It seems the most common way is via the MPAVC which you can find more info on what this is in my other video on NHS Pension. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-avD2cYOyZQU.html I suggest reading the following guide for further information. Feel free to let me know if you have any more questions. www.nhsbsa.nhs.uk/sites/default/files/2021-08/Transfer%20Booklet%20%28V21%29%2007.2021.pdf Thanks

@davidcalder8912 2 года назад

Thanks for the video. I've only now started digging into the detail of this as we are approaching retirement. My question is about the McLeod decision. It seems my wife will be given the option of an additional 7 years in the 95 scheme. She wants to retire at 60, and on a superficial view it seems a bit of a "no brainer". The 95 scheme is available at age 60, rather than 67, so she won't need to wait for benefits or take a reduced benefit, the 95 scheme is "dynamised" i.e. increase at CPI + 1.5% (2015 scheme is only CPI), and there is an automatic lump sum. Am I missing something? Are there any circumstances when it would be better to stay in the 2015 scheme?

@FinancialMadness 2 года назад

Yep for most cases the benefits of the of the 1995 scheme out-way that of the 2015 scheme. However there are many variables at play so its hard to definitely say which one is the better option. The biggest benefit is the ability to retire earlier as you already mention (without penalty) and have the pension pay out for you for a longer period of time. From a monetary point of you the 1995 pension is calculated based on your final pensionable earnings rather than your average (2015 scheme) and the trend in most careers means its likely the persons largest salary will be at the very end.

@davidcalder8912 2 года назад

@@FinancialMadness Think its different for GPs - the 95 scheme is also average salary for them .... isn't it?

@marita8485 3 года назад

Excellent thanks

@FinancialMadness 3 года назад

Glad it was helpful

@davindersohal3227 2 года назад

Thank you for your very informative video. My question is that I will be leaving the NHS next year and am aged 62. I am in the 1995 scheme so my normal pension age is 60 which I qualify for. I don't need to have pension funds at present . Would it be more beneficial for me to delay taking my pension perhaps in 5 years time as it would accrue interest.

@FinancialMadness 2 года назад

Hi Davinder, thank you for the kind comment, I am pleased to hear this video was helpful. It's worth double checking this, but I don't believe you get any benefits for delaying your claim on your NHS Pension. It might work out beneficial from a tax perspective if you have other income streams coming in to support you for those 5 years. but otherwise I believe your Pension Benefits will only increase by the rate of inflation + 1.5%. You don't gain interest in your NHS Pensions as this is a benefits scheme. I tried researching this, but I can't find any information confirming this - so it is definitely worth double checking with your Employer :). If you can confirm back to me, once you have found out that would be highly appreciated. I would have thought this would be a very common question. Also, apologies for the late response, I have fallen ill over the last couple of weeks and I am only catching up on youtube now.

@jodycream8460 Год назад

Is it worth transferring a private pension in to an NHS pension? How does that type of contribution affect your final salary on the NHS scheme? Thank you

@FinancialMadness Год назад

Hi Jody. Thanks for the questions. Before I continue I must stress I am not a financial advisor and any action on your personal finance should be consulted by a professional. That being said, I personally don't see much benefit it transferring it over. There a benefits to having both in this case, (i.e. different ages at retirements, diversifying how you will fund your retirement). I would highly recommend you watch my video on how contribute extra to the NHS Pension, (there are many ways) so it will be good for you to understand all the options you have available to you and from there you can investigate which options works for your scenario. Hope this helps. Let me know if you have any questions

@johnconroy9517 2 года назад

Hi < great again. If the NHS pension is transferred in a Spanish bank account , is it going in at that current exchange rate .. say 1.17?? Thanks John

@FinancialMadness 2 года назад

Hi John. The amount you get in your Spanish account will be based on whatever rates your provider or bank account holder has set, which may differ to the market exchange rate. Please also note that the exchange rates are subject to change, which can have an impact on the amount you receive each month. (e.g. Today £1 = € 1.17, but next month it could be £1 = € 1.30). I hope this make sense.

@shivshef56 2 года назад

Once retired from NHS . If you work private in locum service what are the tax implications after taking NHS pension. How many hours can you work before it affects pension & tax

@FinancialMadness 2 года назад

When you are claiming on your private pension, it is taxed at the appropriate Income Tax level. Any further income that you obtained will be added on top of this and taxed in accordance to the tax threshold for that tax year.

@mystikal518 3 года назад

I left the nhs pension in scheme in January 2020b at age 51,taking my 1995 benefits. How will the Mccloud judgement affect me ? I have approximately 5yrs contributions in the 2015 scheme?

@FinancialMadness 3 года назад

Hi mystikal, thanks for commenting and apologies for the delayed reply. So if you meet the criteria of being affected by the Mccloud judgement. You will be contacted (by post, I believe) once you hit retirement to ask you which benefit would you prefer (a choice between the legacy 1995 scheme or the new 20015 Scheme) for the remedy period in question. As you have retired, I suspect you should receive information on this shortly. But it is worth following up with your provider to see if they currently are in the process of doing this, just to be safe.

@paediatriciandoctorzahidhu8360 6 месяцев назад

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 ?

@FinancialMadness 6 месяцев назад

Do you mean £90,000 or £9,000? For £9,000 the contribution rate is 5.1% so that roughly equates to £38 per month (£459 per annum) in contributions to the scheme. If this is the only income you receive, you will be under the personal allowance threshold, and receive no tax relief and therefore your gross pay would look something like £8,541 per annum. www.nhsemployers.org/publications/nhs-pension-scheme-member-contribution-rates-poster

@glafeuillee7012 2 года назад

Is 2 years the minimum contribution time requirement in order to receive a payment from the NHS pension scheme?

@FinancialMadness 2 года назад

Hi there, From my understanding the only time requirement is your Age to claim on the pension. Minimum 2 years is not necessary.

@RahulSingh-pe8nu 2 года назад

So i've been transferred to the 2015 scheme, how can i review if I'm eligible to apply before April 2022 to remain in the 2008 pension scheme?

@FinancialMadness 2 года назад

Hi Rahul, thanks for the comment. Not sure I entirely understood your question - are you able to clarify please. From what I understood, you are now on the 2015 scheme, after being transferred on the 2008 scheme. But you want to see if you can stay on the 2008 scheme? Have I understood that correctly? Thanks

@aji_noriko1576 3 года назад

Thanks for the great video. From my understanding from your video, I do not need to take any actions until I receive a letter to choose '2008 and 2015' or 'all 2015' around my retirement age? (I have or had 2008 when I started working at NHS. Then, I moved several NHS organisations since. On 1April2015, I worked for my second NHS organisation and then left mid April2015. Then I rejoined other NHS from Nov2015.) In your video, you have explained how to reduce NHS pension %... However,... If I decide to make one of addtional NHS penasion contributions, does it help my NHS pension % low? My contribution % will increase to the next % in a few months... I would like to stay on the current % if possible.... Thanks again.

@FinancialMadness 3 года назад

Hi, thank you for your kind comments, really glad to hear it was useful! For the age discrimination piece, it sounds like it may not be applicable to you (there is a chance if that gap of not working is less than 5 years). What I was explaining was for those who automatically transferred from 1995/2008 to the 2015 scheme, whereas you had left the NHS and re-joined under the latest scheme. Its only for the period where members were forced to move to the new scheme (or offered protection,) who will get the choice between old vs new. I hope that makes sense. For the second part. If you make additional contributions, this will not reduce your pensionable pay, so therefore have no effect on your contributions to the NHS Pension.

@londonp.7110 3 года назад

I’m really glad I came across your channel. I do have a question though and this is actually making me confused. I have less than 2 qualifying years. I have been automatically re-enrolled to NhS pension in July 2019. I have applied for a an opt out and refund in June 2021. After submitting all the required forms, I have been told that I will be receiving a refund within 6 weeks directly from the Pension Agency. However, after about 3 weeks, I received a letter saying that a refund is not possible because “Sufficient membership exists to qualify for benefits”. I don’t understand exactly what that means. I still have less than 2 qualifying years and should be eligible for a refund. What is your opinion on this and is there anything I can do about it? Thank you for being so helpful. 👍🏼👍🏼👍🏼

@milanjosephsebi67 3 года назад

why did you opt-out? You don’t like the free money of 20% of your salary and the tax benefits of your contribution?

@Anna-zb6m Год назад

@@milanjosephsebi67 because not everyone will live to see that money, especially if you have health issues and know you won't live until then

@TheWinDoh Год назад

Hi quick question - I'm 25 and thinking of opting out of the 2015 pension in favour of overpaying my mortgage. I'm hoping to then be mortgage free in 5 years time which for me would be a far greater benefit for now due to the mortgage consuming interest. Can I then opt back in to the pension scheme in 5 years time?

@FinancialMadness Год назад

Yes. as long as you are under the age of 75 and under employment with the NHS there is no reason why you can't re-join the scheme. www.nhsbsa.nhs.uk/member-hub/joining-scheme#:~:text=Rejoining%20the%20Scheme,pension%20and%20are%20under%2050

@TheWinDoh Год назад

@@FinancialMadness thank you so much great information, great channel much appreciated!

@FinancialMadness Год назад

Thank you. And you are very welcome :)

@denzillinet 2 года назад

Thanks for the informative Video..Could you please let me know can i get a refund of deducted NHS pension 1 year 2 months period of NHS service in the UK. please advise .Thank you.

@FinancialMadness 2 года назад

Thank you for the kind words. To apply for the refund, this fact sheet suggests you need to fill out an RF12 form which is available on the NHS Portal website: www.nhsbsa.nhs.uk/sites/default/files/2017-03/Members%20Refunds%20Factsheet%20V5%2002.2017.pdf "You should print off and complete Part 1 of the application for a refund of pension contributions (RF12) form and then forward this along with Part 2 to the NHS employer where you last paid pension contributions. The employer will complete Part 2 of the application form before submitting to NHS Pensions to process your refund" RF12 Form: www.nhsbsa.nhs.uk/sites/default/files/2020-02/RF12%20%28V12%29%20-%20Digital%20-%2011.2019.pdf

@samarthur1847 2 года назад

Oh man I am in such a pickle. I currently have 26 2/3 years in the 1995 scheme till late 2017. Obviously with the remedy I can extend to end 03/22 giving me around 31 years in the legacy scheme. I retire in 2024 is it worth making 24 payments into the 2015 scheme, which I cannot add to after retirement, even if I continue in the NHS, or claim till 67. Or should I opt out and use the money to clear debts in preparation for retirement 😩

@FinancialMadness 2 года назад

Hi Sam, Thanks for the question and sorry for the delay in response. I am not a Financial Advisor so I am not able to advise which is the best option for you. But here are some food for thought questions that might help you figure out which is the correct path to take: 1. If you opted out from the 2015 Pension Scheme, is the money you have accrued in your 1995 Scheme sufficient enough to fund your retirement lifestyle? 2. Ideally its best not to have debt going into retirement. Consider the size of the debt and the interest rate? 3. Look at other options for your retirement? Perhaps a SIPP where you still get the same tax benefits and the Pension age is 55/57. Or an Investment ISA, this has different tax benefits but does not have a Age Limit. (other options also available). I hope this helps. All the best :)

@samarthur1847 2 года назад

@@FinancialMadness Thanks for replying, I really appreciate your time and effort.

@steffysnowy614 3 месяца назад

I would like to get a monthly income and not take cash with 25% Tax free,is that wise my work pension I not so much as I only worked for 5 years at the NHS.Thank you so much for all your video and advise...

@boomba5419 2 года назад

I'm in the 2015 scheme . Do I have to wait till 70 yrs old in order to get my pension? Or can I access this before?

@FinancialMadness 2 года назад

Hey. The normal pension age for the 2015 scheme is the same as your state pension age (For most of us, it is now 68, so just before 70). If your not sure what yours is, you can quickly find out here: www.gov.uk/state-pension-age You do have the option to claim on your pension earlier than your normal pension age (NPA). The earliest you can do this is currently 55 (the minimum pension age). But you will be penalised for taking your pension before your NPA. But how much it is penalised is dependent from how far you are from your NPA.

@stelladzidzienyo2467 Год назад

I want to know whether to opt out after retire and return to work is profitable thanks.

@FinancialMadness Год назад

Thanks Stella. This is actually a really good question but its not so straight forward to describe in a comment. I will be making a video on it shortly, so be sure to keep a look out :)

@JesusPridealpha 5 месяцев назад

If I have create a personal pension with another provider/platform, would it affect how much I get monthly from my NHS pension at retirement if I happen to have a lot of money in that personal pension?

@FinancialMadness 5 месяцев назад

Hi there, So the personal pensions are seen as separate so in that respect there is no direct impact to your NHS Pension. However there is thing that can affect how much you receive as Pension Income altogether. 1) More pensions, mean you are likely to be in a higher tax bracket and/or pay more income tax. *) In addition, there used to be something called the Pension Lifetime Allowance which meant your Pension Benefits could not exceed £1,073,100, otherwise it would trigger a very hefty tax charge. In April 2023, this Allowance was removed and is set to be abolished in April 2024.

@JesusPridealpha 5 месяцев назад

@@FinancialMadness oh! Thanks so much for this information. Better to stay in an ISA then?

@01rayner Год назад

Hi is it possible to pause my pension for 6/12 months so that I can pay off some debt?

@FinancialMadness Год назад

Hi Leyla. Yes, you are able to opt out and in of the scheme at any point in time.

@paediatriciandoctorzahidhu8360 Год назад

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 ...

@FinancialMadness Год назад

Hi there i replied to this comment already. Just copy and pasting in the below: 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

@beverleyrenaud5433 2 года назад

Hi , I’m in the 20015 scheme and have a lump sum and a annual amount , I currently work and have pay int the pension at the moment after returning back to the nhs ... I’m 60 which means I can draw the 2015 pension... I’m currently considering this, so can you clarify.. if I was to draw the 20 15 and retire now , I can take the lump sum and get the annual payment for life, and when I reach state pension I will then get the money I’m currently paying into the nhs and the state pension .. ? Also is there a way to have the lump sum paid into the annual payment, so you get more monthly and no lump sum ...?

@FinancialMadness 2 года назад

Hi Beverly, Thanks for your questions. Just to clarify here, you are on the 2015 NHS Pension which means your normal pension age will be following your State Pension age. Your State Pension Age, 67 years old (please correct me if I am wrong). That means to take money from your NHS Pension without any penalty you have to wait until 67 (again this is assuming you only have the 2015 Scheme). You are welcome to take it out earlier (so at 60 years old as per your message) but you will be subject to a penalty fee for taking it earlier than the normal pension age. According to the link below, because you are claiming it 7 years earlier, it is estimated your retirement benefits will reduce by 31%. You might want to check with your provider to understand what that means for you, in terms of your annual pension pay-out for life. On the topic of a lump sum pay-out - you are welcome to take up to 25% as a tax-free lump sum, but again this will also impact your pay-out for life. Your provider should be able to let you know what these numbers look like. I hope this helps, let me know if you have any questions. Thanks www.nhsbsa.nhs.uk/sites/default/files/2019-08/Early%20Retirement%20factsheet%20%2805.2017%29%20V3.pdf

@hazeb372 Год назад

@@FinancialMadness Your response has helped me too

@suzeatburton5433 Год назад

I have reached retirement age and want to know if I am disadvantaged. If I retire now.

@FinancialMadness Год назад

Hi Suzeat, What makes you think you will be disadvantaged? Thanks

@kristinesilang6139 2 года назад

Im 2yrs and 3mos working. If i opt out, will I be deferred or i can still manage to have the refund?

@FinancialMadness 2 года назад

Hi Kristine, you will not be eligible for a refund if you have more than 2 or mor qualifying years of membership. So I think you may have missed the boat. But it might be worth enquiring as it is not clear when said "qualifying years" would start. My assumption is that it starts once you have enrolled but I am not able to confirm this when looking at document online. Let me know how it goes

@garymulholland7124 2 года назад

Hi I work in nhs from 2016 ,and I pay in £120 month. But my age is 58.so I have round 10 years till I retire is it worth me staying in,as I will only have about 15 years in my pot..people say it will avict my state pension ?? Thankyou gary

@FinancialMadness 2 года назад

Hi Gary, thank you for the comment and the information you provided, apologies for the late response - I haven't been well as of late and I am just now catching up on my RU-vid stuff. Anyway, to start off, I just want to say that as I don't know enough of your financial situation it hard for me to fairly suggest what could be correct for you. So please take the following as a suggestion and happy for you to follow up with any further questions :). Please note, I am not a financial advisor. *a. Is it worth staying in the NHS Pension?* I would be inclined to say Yes. It is still worth contributing to your NHS Pension even if it is for 15years, which is still a significant amount of time. I am not sure how much you earn but assuming an individual earns £25k, and assuming the build up rate is 1/54th of your salary and inflation is fixed at 2%, and individual could expect to see approximately, £9,000 per year from the NHS Pension once they retire. My question to you would be, if you didn't contribute to your NHS pension, do you have an alternative method for saving for retirement in place? If you do and depending on what they are, there is a possibility that those route would be more beneficial for your retirement instead - something to think about :). *b. Will it affect your State Pension?*. Unfortunately, you have been misinformed on this case. Your State Pension is treated completely separate to your NHS Pension and any other Private Pension you may have. The amount of State Pension you get paid is based predominantly on how many qualify years you have contributing to National Insurance (be sure to check out my video on State Pension, for more information). Currently the maximum you can get from State Pension (if you qualify for the maximum amount) is around £9,350. So assuming you claim on both, In the examples above, there is a potential scenario that when you hit retirement you can be looking to claim around £18,350 per year before tax. (Please note these are based on assumptions) . I hope this helps, please do let me know if you have any questions.

@ruthadamson4035 2 года назад

Non terminal early health retirement?

@FinancialMadness 2 года назад

It is possible for member with two years or more members to claim their benefits early and unreduced due to ill health. This doesn't have to necessarily be terminal. There are two tiers of ill health retirement (Tier 1 and Tier 2) and the type of benefits that can be awarded will depend on which tier they meet. Tier 1: the member is determined as permanently incapable of doing their NHS job because of physical or mental infirmity Tier 2- the member is determined as permanently incapable of doing any employment because of physical or mental infirmity. More information can be found here: www.nhsbsa.nhs.uk/sites/default/files/2019-05/Ill%20health%20retirement%20basic%20overview%20-%2020190516-%28V2%29%20%20%20%20.pdf

@nehatomar967 2 года назад

Hey what will happen if i quit NHS with 5 years of working for nhs will i get my contribution?

@FinancialMadness 2 года назад

Hi, if you have contributed to your NHS Pension, then you will be considered a Deferred Member. And will be able to claim on your Pension Benefits at the appropriate age. (i.e. Normal Pension Age or Minimum Pension Age)

@llamudos9809 3 года назад

I want to pay additional pension years into the 1995 scheme now that the Government lost its court case. I apparently have now moved back into my 95 scheme until 2022. As im now affectively back in contributing to my 1995 scheme surely the original rules apply. Can you help?

@FinancialMadness 3 года назад

Hi llamu, this definitely an interesting question. Unfortunately I will need to do some digging, I've had an in-depth look online and kind find any guidance on this. There are several methods a person can make additional contributions to the NHS Pension. The two most common ways are: - "Additional Pension" - "MPAVC" If you contributed to the MPAVC method, then this method will be unimpacted by your move back to the 1995 scheme, as additional contributions through this method are contributed to an additional, secondary pension pot (it acts like a private pension). Check out my video on "How to contribute more to the NHS Pension" if you need further clarity on what I meant. If it's the other method, or another one I failed to mention, let me know and I will try and find out for you. :)

@llamudos9809 3 года назад

@@FinancialMadness I have 3 pensions at present. 95 & 2015 scheme and a PensionBee pension i moved an opted out serps pension into that i had many years ago and forgotten about. If the rules state that i can pay for extra years in it would prefer to buy back in the 1995 scheme as i will be retiring at 58. I purchased 3years 257 days on my 95 scheme a while back but wished i had added an extra 2 years. This is not possible now so apparently you are required to purchase units which amount to £250 each. I was trying to work out if it was worth adding extra years in the DB or is it worth just investing instead? I'm guessing i can add these £250 units into my 95 scheme? but would prefer simply to buy back a full 2 years that should in my opinion now apply as im still in the old scheme and again contributing under the old rules.. Im worried that if i purchase more units they would go into the 2015 which means i would take a huge hit on it due to the ARER deduction penalties.

@garycroft8213 3 года назад

Hi I saw this video re the McCloud judgement - m.ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-DQrDDm5L-y0.html - by Ed Bailey I called up NHS BSA but they couldn't confirm the specifics as yet but the gist is you can move any 2015 pension between 2015 and 2022 into the 1995 section at the point of retirement- this is the remedy period. For my wife she has 4.5 year of 2015 section having left the NHS a few years ago and 14 years of 1995 section (including 5 years bought) so she'd be adding the 2015 section back into the 1995 section. I asked for confirmation from the BSA that this would be on a 1:1 basis and told it should be but asked for confirmation in writing and I'm still waiting.

@llamudos9809 3 года назад

@@garycroft8213 Many thanks Gary you got further than i did when i contacted NHS Pensions. They simply said they were looking into the matter. My concern is a buy extra years and then get penalized as i want to leave earlier than 67. So if i decided to purchase 5k extra i may loose 40% in ARER deductions.

@garycroft8213 3 года назад

@@llamudos9809 I think on the 2015 section you can't buy extra years, just the ability to pay up to an extra 3% to retire 3 years earlier than retirement age without penalty e.g. 68 years reduced to 65, but to do this I think you have to pay in constantly? If you're back on the 1995 section they are essentially a cut price annuity as you could buy upto £5000 worth of benefit per annum, and this costs about half of what it would cost on the annuity market. When my wife was purchasing the £5000 the total contract value started at just over £50k but they increased this twice over the 8 years she was purchasing it. In the end it was about £58k with survivor benefit.

@davidmunford6250 20 дней назад

I’m in 1995 scheme that stopped when I left nhs I was then again enrolled October 2023 until I opted out in June 2024 can I get a refund on my 1995 scheme because there 20 years apart and I never wanted them

@FinancialMadness 15 дней назад

If you have less than 2 qualifying years within the 1995 Scheme then you may be eligible. Please find the full guide here www.nhsbsa.nhs.uk/sites/default/files/2017-03/Members%20Refunds%20Factsheet%20V5%2002.2017.pdf

@AMG97x 2 года назад

wouldn't be better to put that money in an ISA bank account and invest it?

@FinancialMadness 2 года назад

Good question. There really is no right or wrong answer. Both options have positives and negatives so its really up to the individual to determine where the extra money is put that would prove to be more beneficial to them. Having a nice balance between the two is also another great option, for example, if the person in question doesn't have an investment ISA but just a pension, then yes it might well be worth them diversifying. But to be honest, if these are your two options your deciding between on what to do with your extra cash, you are already on the right path :)

@johnconroy9517 Год назад

hi , what would happen if I placed a large. lump sum into my NHS? Does it buy years ? or something else?

@FinancialMadness Год назад

Hi John, thanks for the question. It really depends on a number of factors. I can be potentially both. Check out this video where I run through all the ways to contribute more to your NHS Pension. I hope this has the answer you are looking for. Let me know if not

@aliabdal Год назад

Just to clarify - the NHS contribution of 20.68% is completely irrelevant to the employee. There is no difference to the pension received whether they contribute 1% or 100%. Is that correct? Finally, if as per your calculation on average one receives more on pension than the lifetime contributions, would this not be a ponzi style scheme where the younger contributors pay for the retired employee's but the financial model is simply not sustainable?

@beverleysilcock9135 2 года назад

Do you pay tax on your lump sum

@FinancialMadness 2 года назад

You are able to claim up to 25% Tax Free, everything else is subject to tax. How much tax (if any) you will pay will be based on the Income Tax Rate and Bands and how much you take out at any given tax year.

@johnconroy9517 Год назад

NHS Pension

@mimo4856 Год назад

15:25 why though? 55% tax!! Bruh.

@fine9871 3 года назад

6:00 ...Sounds like a Ponzi scheme. Lol

@ladymunter 2 года назад

You’re so cute

@FinancialMadness Год назад

☺ Thank you :D Haha

@1globalmedic Год назад

Thank you for a very informative video. Could I just ask (what is probably a silly question). If I have paid into the NHS pension scheme all my life and reach 68 and then retire, assuming I die 1 year later and have no children / spouse etc what then happens to all the money that I have paid into the scheme.

@FinancialMadness Год назад

Hi @1globalmedic . Thanks for the kind words an no its not a silly question at all. So if you don't have any spouse or children then you must nominate a "Qualifying Partner" with your Pension provider. Failure to do so, will mean your Pension will be considered as part of your "estate" (fancy way of saying your assets) when you pass away and therefore may be subject to inheritance Tax. Check this website out for more information: www.legalandmedical.co.uk/do-you-lose-your-nhs-pension-benefits-when-you-die/

@1globalmedic Год назад

@@FinancialMadness and assuming I have a spouse and we both die at age 70... Can the remaining pension then go towards children. I just don't want loads of payments to be made and not being able to get what I put in, out.