I tried looking at my TRS and it makes absolutely no sense to anyone except for people who are involved in it hence why I went hunting for explanations on why I'm actually paying anything into my pension. Felt like it was just going into a black hole! There are lots of pension videos from nhsbsa but they don't really explain anything at all, just silly animations and pop up text. This has been a brilliantly clear explanation of how it works. Thank you.

@FinancialMadness

2 жыл бұрын

Thank you Ewan, these comments mean the world and so thanks again for taking the time in writing a comment. I am pleased to hear the video was helpful :)

Im a senior supervisor for a NHS Trust in the uk. Many of my team haven't a clue about, well about anything TBH and although I'm not the sharpest pen in the pencil pot, I have been really struggling to understand how NHS pensions work. As a supervisor, I'm the first point of contact for many of my staff and it's embarrassing that I can't help them due to the lack of management training I get, or don't. But thanks to your videos, I am a lot more comfortable and confident in what i can advise my team . Thank you.

How can anyone give a thumbs down? This guy is providing you with some very useful info if you work in the NHS.

@FinancialMadness

3 жыл бұрын

Hahaha thank you for the comment. And really appreciate the positive feedback!

Thank you so much for this. I have worked for the NHS for 20 years and have struggled to work out the calculations from the statements provided but this has explained things very clearly.

@FinancialMadness

Жыл бұрын

Wonderful!. I am so glad this helped :D.

Wow, great timing. I'm literally getting ready to retire at the age of 63 (64 in sept) as I'm worn out and want to enjoy some time for me. I've been talking to my brother who retired a few years ago, but you've explained it perfectly. Will make my phone call to H.R easier tomorrow 😂 Thankyou

@FinancialMadness

Жыл бұрын

Aww thank you for the kind words. I am so glad this is helpful! I hope the call with HR went well :)

@angelaharris6577

Жыл бұрын

@FinancialMadness Yes it did thank you😀

Thank you for this video. I have been paying NHS Pension for about 12 years but it is only few months ago that I really understand the importance and value of NHS PENSION. Since then I have been doing more research and now I educate people on my KZread channel about planning for their future. The future is not as far as many people think.

Lots of help as a NHS worker who is unsure about being in the NHS pension. Thanks very much Kozan and financial madness for this help! Much appreciated!

@FinancialMadness

3 жыл бұрын

Thank you so much. I am glad you found this really useful :)

I think this is the first video that actually emphasizes that the employer contribution has no bearing on the amount of pension that you will receive. Well done👍

@FinancialMadness

2 жыл бұрын

Thank you! I am glad you found the video helpful :)

You should be able to see by these questions how badly the NHS explain anything. I cannot get a soul to actually help. So thank you for your videos....

@FinancialMadness

2 жыл бұрын

Thank you again :)

Thank you, My NHS pension officer couldn't explain this at all.

@FinancialMadness

3 жыл бұрын

Thanks Rubel! This comment made my evening ☺️

Thanks a lot! I have been trying to understand the calculations for ages, and you've nicely explained it clearly.

@FinancialMadness

3 жыл бұрын

Thank you! It really means a lot to hear that my explanation was clear to understand.

Was a no brainer to like. Thank you

@FinancialMadness

Ай бұрын

I am glad you thought so :)

Fantastic! I just sat through an hour long webinar on pensions organised by my LMC and was none the wiser. 10 mins watching you and every word was useful and clearly explained. Thanks!

@FinancialMadness

3 жыл бұрын

Thank you Lucy! I am glad you found this helpful :).

Very well explained especially with examples given, thank you

This is really helpful. I have been with th nhs for 10 years and never understood it

Such an informative video - thank you :)

@FinancialMadness

Жыл бұрын

Glad it was helpful!

Last week I was shocked to find that my deferred pension is not subject to any CPI uprate for the years between when I left the NHS (in 1990) and last week when I finally reached my retirement age! I left the NHS as a Band D (Enrolled Nurse) with a few days short of 8 years pensionable service and the pension I receive, as of 2 days ago, is based on my final salary back in 1990 ... and of course that's far below what is minimum wage today. So almost 8 years pension gives me the grand total of £183.99 per month. I think it's criminal that they pull a stroke like that when they tell you it's an "index linked pension" that you're paying into.

Thank you so much for doing this video. Very much appreciated.

@FinancialMadness

Жыл бұрын

My pleasure! I am glad you found it helpful

If you are startibg your career in the NHS ,please do yourself a favour and join the pension. In your 20s it may feel like wasting money but it is anything but.

Thank you so much for this video, it has indeed given me more understanding about my pension scheme,

Fantastic wee video, cheers for that

@FinancialMadness

2 жыл бұрын

Thank you for the kind words. I am glad you found it helpful

Thank you! My wife's NHS pension statement was indecipherable to us until I watched your video. Now makes complete sense.

@FinancialMadness

3 жыл бұрын

Excellent! I am so glad this video was helpful. Thank you for commenting!

So useful…Thankyou for explaining something that appears so complicated to read about online!

@FinancialMadness

2 жыл бұрын

Thank you! I am glad this was helpful!

Hi Kozan, Thankyou for taking the time to reply to my question I really appreciate it. I actually managed to speak to somebody a few days ago from NHS pensions who said that yes next April my 1995 pension would close but I wouldn’t loose the benefits I had accumulated so far and from 1April 2022 the rest of of my pension contributions would go into 2015 pension scheme. She said I would I technically have 2 NHS pensions the 1995 one from 2005 (when I started working for NHS) till 1/4/22 and then the 2015 until I retire. I understand the 1995 will be closed so no more contributions can be added to it but wondered if I don’t draw it until I retire in 8 years time could its value still increase or possibly decrease. Your videos are really useful and easy for everybody to understand. Thanks again for making them, I look forward to watching your Q & A on NHS pensions. Karen

@FinancialMadness

3 жыл бұрын

Hi Karen, Yes, this is correct. Whenever, one person transfers from one scheme to another, the two/three schemes do not merge together. The legacy schemes still exist the only difference is now you are contributing to a new scheme. I will be sure to make this more clear in my Q&A video. With regards to your 8 years question (it is a really good question), the value of these schemes will not change. For the 1995 scheme your Final Salary is based on your salary during the last 3 years of your membership. Reading the 1995 Booklet (link below, slide 5), your final salary is adjusted to keep up with the cost of living. So you should expect your 1995 final salary to increase at the rate of inflation. www.nhsbsa.nhs.uk/sites/default/files/2018-04/Key%20Notes-1995%20Section%20Estimates%20%28web%29-20180409-%28V2%29.pdf Let me know if you want any other questions answered :)

@grahamlampert8887

3 жыл бұрын

Hi Kozan, thank you once again for your help, it is appreciated. Karen

@FinancialMadness

3 жыл бұрын

@@grahamlampert8887 No problem :)

Great video

at last a clear easy to follow guide

@FinancialMadness

2 жыл бұрын

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

Thanks for the brief yet thorough information

@FinancialMadness

Жыл бұрын

Thanks. I'm.glad you found it helpful

Hi Kozan, Thank you for such helpful information. I am 53 years old was working within the NHS 1995 scheme from 1994 to 2008 then I left the NHS and am currently working as a Nurse in Canada. Could you provide some insight on how I can claim a lump sum as I heard it can be claimed from 50 years old. Is that correct?

Super helpful. Thank you so much!

@FinancialMadness

2 жыл бұрын

Thank you! I am glad it was helpful!

Brilliant video . thanks a lot . I just feel it should have been longer and more descriptive . In the end I was thirsting for more .

@FinancialMadness

3 жыл бұрын

Hi Faiz, thank you for your kind comments! If only everyone shared your enthusiasm when it comes to Pensions 😂. If you would like me to make another video on the NHS Pensions (or anything else Personal Finance related), feel free to let me know, I am always open for suggestions :).

@simpso0ns

3 жыл бұрын

While the video was excellent and something which many of us have sought for , I feel I would be even more interested in the following . 1. How does your family get affected and compensated in case of your death while in harness . 2. What happens to your pension after your death post retirement . How to calculate how much the spouse will get . 3. Do you need to nominate your wife for the pension or is it automatic . 4. Is there any scheme better than the NHS pension currently in the UK . 5 . Are there any advantages or disadvantages of starting late and how much actually we may lose by the loss of compounding . 6. Is a life insurance intrinsic to the NHS pension and how much is it . 7. What is the earliest age at which you may voluntarily retire and still be able to avail some part of the pension ( 2015) . I don't expect you to answer all of these but just some suggestions of what people may seek to know . And again , thank you very much for a stellar video .

@FinancialMadness

3 жыл бұрын

Thanks Faiz, for these insight. I get will probs do a Q&A video based on your questions and from others too. Thank you for sharing

Amazing video man! Super descriptive as well made me realize I gotta improve on my vids haha! Just gained a new sub 👌

@FinancialMadness

3 жыл бұрын

Thanks man! I am glad you found this video helpful and thank you for subbing!👍

Thank you, thank you, thank you, been asking for years how this works now I finally understand.

@FinancialMadness

2 жыл бұрын

Glad it helped! Thank you for the kind comment :)

Really useful information, thanks 👍🏽

@FinancialMadness

2 жыл бұрын

Thanks Sharon. I am glad it was helpful!

This is brilliant. Thank you Kozan

@FinancialMadness

3 жыл бұрын

You're welcome. Glad you enjoyed it 😀

very good and well exlplained.

@FinancialMadness

3 жыл бұрын

Thank you! I am glad you found this video useful :)

Excellent informative video.

@FinancialMadness

2 жыл бұрын

Thank you, I am glad it was helpful!

Thank you very much. Concentrated and helpful information. Great job. Keep up!

@FinancialMadness

3 жыл бұрын

Thank you for your comment. I am glad you found this helpful!

Now i can decide if i go for a pension or not. Thank you!!

@FinancialMadness

3 жыл бұрын

You're welcome! I am glad I made it clearer for you 😃

Thank you. I have really understood more from this video. One question? Are we able to nominate a beneficiary of a will to the pension pot amount when a pensioner dies?

Great great great video!!!!

@FinancialMadness

3 жыл бұрын

Thank you!! I am glad you found this useful!

This video is very helpful! I am currently on the 2015 NHS Pension Scheme. A lot of people have been telling me to opt out of the pension scheme as it is a contribution scheme and the amount of money you put into the pot is adjusted with the market and the money you receive when you retire can be much lower compared to what you actually put in. You clarified that the NHS Pension Scheme which works on the defined benefit scheme. I have a question about the re-build rate and pension re-evaluated section (time 9:24). You discuss what the annual pension entitlement is and base it off the re-build rate and pension re-evaluated rate, however, what about the 9% contribution by the employee and 21% contribution by the employer? Where's all of this money gone to?

@FinancialMadness

Жыл бұрын

Hi Parisah, Thanks for the question and I can see from another comment you already found the answer in my other NHS Pension Video. I am just posting the link here, just in case someone else has the same question and would like it answered too :) kzread.info/dash/bejne/nJ1-sMecqMSdcaQ.html&lc=UgxNgduBDdl4BFP3xE94AaABAg

Wow a final pay pension, I am in the wrong job. Hands up all those people on a private final pay pension.

Thank you for the video!!

@FinancialMadness

3 жыл бұрын

My pleasure! I am glad it was helpful :)

Age of 65-68 for Paramedics is nuts!

This is SO helpful

@FinancialMadness

2 жыл бұрын

I am so glad to hear. Thank you so much :)

If I retire at 60 I will have part 95 and 2015 pension pots. My question is for the 95 pension where it is the best of the last 3 years, does this apply to the last 3 years up until 2015 when it changed to the new scheme or it is the best of the last 3 years at point of retiring?

@FinancialMadness

2 жыл бұрын

Hi Karen, good question. It counts the best of the last 3 years at the point of retiring :)

If we opt out of pension after 1 year, Do we get the amount which NHS also contributed to it? ( for eg: The salary is 2000 pounds. I have contributed 200 pounds each month and NHS contributed 400 ( 20% of 2000) each month. If I opt out after 1 year, do I get 7200 pounds? (200 * 12 + 400 *12)

Very informative. Thank you 🙏

@FinancialMadness

3 жыл бұрын

Thank you! I am glad it was helpful!

Great video. Informative and easy to understand!

@FinancialMadness

3 жыл бұрын

Thank you! I am glad you thought so.

This was really helpful

@FinancialMadness

3 жыл бұрын

Thank you. I'm glad you found it useful

if i work for 5 years in nhs am eligible to get pension? can i retire early at 57 and my current age 51 and the early retirement how much amount is reduced

What about the lump sum on retirement ? It would be useful to show this as comparison as the 1995 section seems to have a much smaller annual pension vs the 2015 section, however the lump sum would change this comparison.

I have worked in the NHS since the age of 16 now 36 , so have about half of my pension in the 1995 scheme and half in the 2015. My question is regarding enhancements to my pay and how this will affect my pension. For example I receive stand by payment £325 for on call and a recruitment and retention payment of £224 monthly basis ,both of which are pensionable pay. It is my understanding that the 2015 is career average , so does this mean that my extra contribution are not going to ultimately increase what my pension salary will be? Any help would be much appreciated.

@FinancialMadness

7 ай бұрын

Hi there, Thanks for reaching out. So any pensionable pay is taken into the 2015 career average scheme, so these extra payments will help increase your pension salary. And should be taken into account when calculating your Career Average. I hope this helps

@loooodoooog

7 ай бұрын

@@FinancialMadnessThanks you for taking the time to answer that for me. Much appreciated 👍🏼

Very clear and easy to understand, Thanks!

@FinancialMadness

2 жыл бұрын

Glad it was helpful!

So helpful thank you

@FinancialMadness

3 жыл бұрын

You're welcome. I am glad you found it helpful 😃

great. thank you

@FinancialMadness

3 жыл бұрын

No problem. I am glad you found it useful 😃

This was so excellent, I loved the excel calculation!

@FinancialMadness

2 жыл бұрын

Thanks. I am glad you found it helpful :)

Informative thank you.

@FinancialMadness

2 жыл бұрын

Thank you very much!

OK I'm 60 and lived in France for 20 years. In that time I didn't pay into a pension scheme. I started working for the NHS in 2021. I decided to add a top up to my NHS pension contributions by paying in the maximum allowed, which is £6500 and may do the same this year. Is that a good idea?

Hi. If your working past your 1995 retirement age and are moved into the 2015 scheme in April 2022. Which years salary are used to work out your 1995 allowance.

@FinancialMadness

2 жыл бұрын

Hi Paul, Great question. The 1995 Scheme will still be caluclated using your Final Salary even when moved to the 2015 Scheme. As long as you don't take a break in service for more than 5 years. As per the NHS Website: "_You will not lose your final salary link if you have one You’ll also keep your final salary link for your 1995/2008 Scheme benefits, as long as you don't have a break in membership of more than 5 years. This means when it’s time to pay your 1995/2008 benefits, they’ll be calculated using your final salary at retirement. If you've built up practitioner benefits these will be protected at retirement using arrangements equivalent to a final salary link, as long as you don't have a break in membership of more than 5 years._ " www.nhsbsa.nhs.uk/changes-public-service-pensions/your-nhs-pension-after-1-april-2022

Hi what if you want to stop working at 45 years old. Does still apply and i will get yearly pension

what hapens the pension (2015 )amount ,when a employer died ? if spouse presnt, if childeren abvoe 18 age..?

@FinancialMadness

3 жыл бұрын

Hi, thank you for the question. If the employee dies before reaching retirement or within 5 years of retirement and the spouse is present without any dependant children, then the spouse may be entitled to a lump sum cash. If the employee dies whilst in retirement, the spouse will receive the employees final salary pension, but at a reduced rate. I hope this helps Thanks

Hi, I'm actually new in the UK and I'm contemplating if I should opt out from the pension scheme for the meantime until I adjusted with my finances and to enroll back. Is it true that when you opted out of the pension scheme, the tax will increase? Hope you can enlighten me with this. Thanks. Btw, your video helped me well to understand its benefit. Thanks.

I joined nhs in 1978 took my lump sum in 1995 . joined again in 1998 and am still employed ,will I still collect my monthly sum when I retire in Oct 2022 .Thanks glenda

The issue a lot of staff who are on the 1995 scheme are having relates to them being switched onto the 2015 scheme and then the McCloud judgement where they will be able to count the years from 2015 to 2022 as being 1995 scheme years. The problem is that any years on the CARE scheme aren't counted as pensionable years under the 1995 scheme so for example my wife's years of Reckonable Service is 18, in 2015 (or 25 after McCloud 2022). So if she works on to 2029 and retires at 60 her 1995 scheme pension isn't benefiting those years as multiplication years and the pension generated from 2022 to 2029 will be CARE scheme pension which she won't get to 67 (68 if government gets changes through). Also, staff trying to boost their salary in final three years by doing a year of nights are being told conflicting messages as to what a year means. The book says 365 days but is this 12 rolling months, a financial year or January to December?

Really helpful, great video. Up late at night thinking about the future but glad I stumbled upon this 😄. I am wondering if you think it is work opening a SIPS as well as paying into the nhs pension. I hear it can act as a bridge if you wish to retire earlier than the standard retirement age. 68 seems too long for me!

@FinancialMadness

3 жыл бұрын

Hi Andy, I am glad you found this video helpful after what I can only imagine must have been some serious Personal Finance KZread Rabbit Hole! 😂 You have quiet a few options available to you, if the retirement age of 68 is of concern to you then a SIPP is a good way to combat that, it can act as a top-up and has an earlier retirement age of 55 (soon to be 57). Alternatively, you can think of investing your money through an ISA. Unlike the Pensions you don't get tax rebates when you contribute, but you don't have to worry about paying any taxes at withdrawal, and there are no age restrictions too. I made a video earlier where I toss up the pros and cons of contributing more to Pensions or ISAs, so might be worth checking out: kzread.info/dash/bejne/l2eXzbeOfaXenbg.html Also, the next video I am working on is the concept of how contributing too much to your pension can actually be a bad thing. Might be helpful for you to check that out once its released on Monday :)

Great video and super informative! Thank you for sharing, please keep the great work going!!

@FinancialMadness

3 жыл бұрын

Thank you! Comments like these, help me give me the drive to do more videos this. I am glad this was helpful :)

Hi I am totally confused with what i can take as a lump sum and when .I am in 2015 which i only joined in 2017 so pension will not be any great deal . I have a value on my TRS OF £1044.36 (Pension) is this the annual pension as it stands today? I have a lump sum value of £6962.40 , can i take this amount on retirement?

@FinancialMadness

2 жыл бұрын

Hi Denise, Thanks for commenting. I have not actually seen a TRS and the information online is very limited. So the below is my best guess is (but I do think it is accurate). Firstly, Yes the value of your Benefits stands at £1,044.36 per year (once you reach Normal Pension Age). And Secondly, the lump sum value represents your pension benefits if you were to fully take it out as a lump sum (at Normal Pension Age too) I found this website quite useful in providing extra detail on the matter: www.legalandmedical.co.uk/navigate-and-understand-your-nhs-total-reward-statement/

I do find it confusing with NHS pension and trying to find out how do I know what is my total pension doing now. I have looks at TRS and is that the way to look at? Or is there way to see? Thanks again

@FinancialMadness

Жыл бұрын

Good question. So your Total Rewards Statement should show you how much of your Pension is currently worth. But I understand there is a separate service you can request if you want to get a prediction of how much your pension will be. Follow this link: www.nhsbsa.nhs.uk/member-hub/getting-estimate-your-pension I hope this helps. Let me know if you have any more questions. Thanks

Hi Financial madness , if I retired early ie 62 . I would not need my pension until normal pension age 67 ahhhh. So what would happen to my pension ie any rise over those years?

@FinancialMadness

2 жыл бұрын

Hi John, yes great question, if you stopped working for the NHS, from that period until you claim your pension will still increase by the rate of inflation (i.e. Revaluation Rate)

thank you for your valuable videos. I wanted to ask if we could have a break from contribution to the scheme ( especially at the beginning of NHS work? if yes how long could it be to be able to come back or start our contribution again?

@FinancialMadness

Жыл бұрын

Hi there, Thanks for the kind comment, I am glad you found it useful. And yes you can Opt Out and In at any point. There is a really helpful FAQ page provided by the NHS which should answer most of your questions. Let me know if anything doesn't make sense :) www.nhsbsa.nhs.uk/sites/default/files/2017-03/Member%20Opting%20Out%20factsheet%20%2802.2017%29%20%28V5%29.pdf

Been in NHS since 2006 , at 60 want to take my whole NHS pension , put with another pension I have and drawdown every year . Is this possible ? Thanks

@FinancialMadness

Жыл бұрын

Hi Mr M, Thank you for the comment, however I am struggling to understand your question. Do you want to withdraw your NHS Pension in one Lump Sum at the age of 60 and drawdown from another Pension Fund for your retirement years??? If so, then yes. You can do this, however I would look into the Tax Implications of doing this, as this may not be the most tax efficient way to withdraw on your Pension.

Hi...thanks for sharing your knowledge on pension. I'm a Registered Nurse planning on immigrating to the to join the NHS in a couple of months. My question to you... I'm 55 years old, if I decide to work between 3-5 years with the NHS, can I opt to retire at 60 years? Would I received a pension? I know it would just be minimum working only three to five years. My salary offer is £28,407/annually. Thanks!

I worked from 1973 as a student qualified in 77 and continued working until 1985. I then left. I am assuming l will not be entitled to an nhs pension. Could you please let me know. Thank you.

Superb video!!! Thank you so much. What is CEV and how do I find it in my TRS?

@FinancialMadness

3 жыл бұрын

Thanks Ed, I am glad you found this helpful. Do you mean a CETV? You should be able to access your TRS using a gov.uk verify or via ESR if your employer has given you access to this.

Is there any kind of insurance in nhs pension ? For example I work for NHS 5 years and I'm part of the nhs pension. And For example I had accident or I'm sick and I can't work for NHS. I'm band 7 is there any protection in that side ?

@FinancialMadness

3 жыл бұрын

There doesn't seem to me be any insurance cover 'per-se' on NHS pension if you become temporarily out of action due to a sickness or an accident. They do allow for early access to your pension if you do become permanently incapable to carry out your duties. www.nhsbsa.nhs.uk/sites/default/files/2019-11/Ill%20health-AW33E-20190717-%28V18%29%20digital.pdf There is a separate scheme called the 'Injury Benefits Scheme' which pays benefits to temporary or permanent loss of earnings, however this seems to cover incidents that are related to work only. So accidents outside of work will not be covered. Also, do check if you are covered under the scheme, there is a helpful section on the websites FAQs. www.nhsbsa.nhs.uk/about-injury-benefits-scheme For anything else, you may have to go privately to obtain full coverage, but it is worth speaking with your Employer directly to check this.

Hi, are you able to explain the revaluation factor and what it means for the value of my pension please? Thank you

im just curious about this nhs pension, what if someone passed away before the age of 55 does she/he get back the money she or he contributed?

@FinancialMadness

Жыл бұрын

Hi Ivy, Good question, so if the member of the NHS Pension passes away before they can claim it. A pay-out will be made to a beneficiary (normally this would automatically be a spouse or civil partner, unless specified otherwise). More information can be found here: www.nhsbsa.nhs.uk/pensioner-hub/bereavement/what-happens-your-pension-when-you-die#:~:text=The%20NHS%20Pension%20Scheme%20provides,the%20event%20of%20your%20death.

Who can I call to give me advice... The nhsbsa? They don't seem to want to help. Thinking of taking a lump sum... And rejoining pension by going back to work is it after 24 hours? I'm in 1995 scheme AND 2015. Worked for NHS from 2002. 😢 Nobody to help me

@FinancialMadness

2 жыл бұрын

Hi Anne, I am happy to offer some guidance. Please note however that I am not a Financial Advisor nor do I work for NHS Pensions. But if you are struggling to find help, feel free to email your questions to me at financialmadness1@gmail.com and I can take a look :)

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

7 ай бұрын

I have responded in your other comment.

Does the NHS contribution is 20% of the annual income after OR before Tax ?

@FinancialMadness

Жыл бұрын

The NHS pension contribution is taken from your salary before tax. This means that the contribution is calculated based on your gross salary before any tax deductions are made. But remember, this is a type of Defined Benefits Scheme, the money you get from the scheme is dependent on how many years you contribute, average salary, and the revaluation rate. Yours and the employers contributions are helping to pay for the current pensioners of the scheme. Hope that makes sense

Hi @FinancialMadness - This video is definitely what I needed to see. No one from NHS Pensions could answer my questions and this did it in 13 minutes. I have only just joined the NHS in the past 3 months and I am on the 2015 scheme. I have a long way ahead of me (retirement at 68) so currently another 39 years of working. If I stay in the NHS, do I pay into the NHS pension until my last pay check before retirement or is there a cap on the maximum amount of years that I can pay into the scheme? In other words, can I pay for another 39 years or are my contributions stopped before that? Also, am I right in thinking that the 25% tax free lump sum is still available, but only after I have retired? Also, do they work out 25% from your annual entitlement or some other figure?

Hi Kozan, really helpful video! What happens if you would like to leave the NHS early (say 55 years old) but have had a 30+ year career in the NHS and do not need to access to your NHS pension until state retirement age (68 years old). Would this affect your entitlement? This would be based on the 2015 scheme. Thank you!

@FinancialMadness

Жыл бұрын

Hi A Taylor. Great to hear that you found the video helpful! As for your NHS pension, it's important to note that choosing to do this won't have any negative impact on your current 2015 pension benefits. The only thing that would change is that your benefits would no longer increase (because you are no longer working, however, that your pension should still be adjusted in line with inflation). So don't worry about any penalties - you're good to go!

Really helpful video, thank you! I’m looking into additional voluntary contributions to boost my NHS pension. Online help is very limited & online only really directs me Additional Pension. Is this the same thing??

@FinancialMadness

3 жыл бұрын

Glad it was helpful! Additional Pension is just one possible way you can contribute more to your NHS Pension. I created a video on what this type means and other common options that are also available. kzread.info/dash/bejne/k6p4lMWSf9zAgbg.html I hope this helps :)

How can I obtain the AW8P form?

@FinancialMadness

7 ай бұрын

Hi, Use the link below to download www.nhsbsa.nhs.uk/sites/default/files/2023-08/NHSPensions_AW8Pform_%28V22%29_202303.pdf

Hi, I work for the nhs I have joined the 2015 pension scheme, my salary is 20k I am 49 yrs old. when I retire I would like to live comfortably. I would like to buy additional pension credits, but I don't know hoe much to increase my contributions by. I would like an annual pension income of 38k at retirement. is this possible, and how much do I have to increase my monthly pension instalments by? thanks for your help. Jonathan hinkins

@FinancialMadness

2 жыл бұрын

Hi Jonathan, Thanks for reaching out. It is hard to say without more information - however on average it is usually a challenge to save a Pension Income that is larger than your regular working income (not impossible, but most people tend to achieve below this). That being said, there are different variables that we can look into? I.e. Will you be able to qualify for the full state pension, any previous private pensions you have had since you joined the 2015 scheme. I appreciate this information is quite sensitive, so feel free to email me at financialmadness1@gmail.com if you want a further discussion. Again, please be reminded that I am not a financial advisor, and anything I do say should not be taken as advice. I can only provide information for educational purposes. If you would prefer advice, then please do seek out professional assistance.

Thanks for simplifying that. I was wondering if there’s any way I can find an excel file like the one you showed to calculate my pension entitlement with my own numbers

@FinancialMadness

3 жыл бұрын

Hi Mohit, thank you - I am glad you found it useful. The spreadsheet is something I created and you can access it using this link (docs.google.com/spreadsheets/d/1GHcrRnKQO5aOq0U1BK0HfmS01nwpdhnk0wd65VHjqYs/edit?usp=sharing) It is restricted, so if you want to save your changes just save another copy :) I have also put the link in the comments section too, just in case somebody else finds it useful!

Thank you so much for taking your time to make this video .. it is really helpful.. one small Question. What if some one dies far before reaching the retirement age ?

@FinancialMadness

3 жыл бұрын

Hi Dekey, Apologies for the delayed reply. I am glad you found the video useful. If you become severely ill, you can gain access early to your pension, without any penalty. In the event of you passing away before retirement ages then yes, your Spouse/ Civil Partner or nominated Partner can receive a lump sum on death and they will later receive a proportion of your final salary until they pass away.

Much informative..In ur example table u showed pension revaluated and rebuild rate.accoeding to ur example one who only get £14000 p.a..Where the contributions going? can u pls explain with our contribution and nhs contribution with an example table.if my p.a £25000 and contribution 9.3% monthly

@FinancialMadness

3 жыл бұрын

Hi Sona S, thank you for your question. The NHS pensions work slightly differently than most workplace pensions. It is on something called a "Defined Benefits Scheme" which is a scheme that allows you to get a final salary for life until you die. (This is different to the common "Defined Contribution Scheme', which gives you a pension based on how much you and the employer have contributed into your individual Pension Pot and pension for life is not guaranteed). Under the NHS Defined Benefits Scheme the money you contribute (the 9.3%) and your employers contributions effectively go into this big NHS Pension Piggy Bank. Everyone who is working for the NHS and is currently in the scheme will also be contributing to the same Pension Piggy Bank. The money from this Piggy Bank is used to help finance NHS retirees who are now claiming on their Pension today. The money that you contribute, doesn't have a direct impact on what you will get in the future. Once you reach retirement age, the money you get will be financed by those who will be working and contributing to the NHS Pension Piggy Bank at that point in time. (By the way, this highly simplified, but the concept still stands) If you are in the 2015 scheme the amount you get at retirement is determined by your Salary/Build-Up Rate (1/54th of your Salary), the Revaluation Rate (Inflation plus 1.5%). Calculating your projected income is a bit complex as there is no way of knowing what your Salary and the Inflation Rate will be in the future. The example I gave in the video was simplified as I fixed Salary at £20,000 for 25 years (salaries tend to increase as person develop through their careers). I also fixed inflation (which changes year on year). I did this to demonstrate the concept of how the NHS Pension is calculated. From reading online, I understand, that may be a way to get a better estimate through work, I would suggest speaking with someone within your workplace on how to do that (HR or the Payroll team should be able to advise you) I hope this helped. Let me know if you have any further questions :)

Nice video Can I ask in my case I want to opt out because i want to leave the uk.I have joined d nhs pension scheme more than a year ago ,will my refund include my employer‘s contribution as well or is it just my own contribution.

Dude! That was so clear, everyone says "the NHS pension is really good" but no-one seems to know any detail past that. I have a few questions, can you take a lump sum at any point? Are you taxed on the pension when it is payed to you in retirement?

@FinancialMadness

3 жыл бұрын

Thank you! It very warming to hear that what I set out to achieve has been accomplished. I am glad you found it useful! Thanks for the questions. 1) You can take out your lump sum pretty much anytime AFTER you hit retirement. You will need to apply for this and from what I understand the lump sum payment will be made to you within 30days of your submission. 2) Yes, it is very likely you will be charged Income Tax when you start claiming your Pension. The amount of tax will differ depending on how much you are earning. In the example I gave, if you are earning £15k per year (and you had no other income) you will be charged an Income Tax of someone who earns £15k a year which at todays rates means you are a Basic Rate Taxpayer and will be charged 20%. If your Pension is worth £55k per year you will be charged as a Higher Rate Tax Payer and will be charged 40%. Remember, Income Tax Rates are likely to be different in the future. Another thing to be aware of, that not many people know about, if you breach something called your Annual Allowance or Pension Lifetime Allowance then you can be at risk of paying another tax bill. If you check out my most recent video I explain this in more detail. kzread.info/dash/bejne/fKaelppumNfMo9Y.html, Hope that has cleared things up, give me a shout if you have any more questions!

If it’s just 1/54 of income per year, what impact does the pension % have?

@FinancialMadness

2 жыл бұрын

Thanks for the question. I take it you mean the impact of your contributing %? It doesn't have any impact on your Pension per se'. You should think of it as more of a cost to be in the scheme. If you're not contributing to your pension, then you're not enrolled, and therefore your pension doesn't grow by 1/54 per year. Hope that clears things up. Let me know if not

@CSOTRBTF

2 жыл бұрын

@@FinancialMadness thanks for the quick reply! And yes, that answers my question! Keep up the good content 👍🏾

@FinancialMadness

2 жыл бұрын

Awesome glad to here. Thanks mate!

CPI of 2%. those were the days.

@FinancialMadness

4 ай бұрын

Hahaha, very that!

Oh dear. Some serious inaccuracies here. Needs an update to include the remedy arising from the McLeod judgement

@FinancialMadness

2 жыл бұрын

Hi Ian, A video has recently been released on McCloud Judgement. I hope this address any concerns you have.

Great explanation. Can you still pay additional contributions to the 1995 NHS pension scheme?

@FinancialMadness

3 жыл бұрын

Thank you. I am glad you enjoyed the video. Only if it you are an active member of the 1995 scheme can you make additional contributions to it.

Thank you for the video. I have recently realized the changes and now understand that the 1995/2008 benefits remain. I'm 51. Started in 2001, left 2015 and returned 2021 at a lower banding and therefore salary. Will my 1995/2008 remain with the salary i had at that time (it was the highest in 2015 when I left). I really struggle with the TRS to access my own information!

@FinancialMadness

2 жыл бұрын

Hi Tilly, Thank you for the comment and kind words. The older pensions do take into account your salary at the time of your pension. But because you left for a significant period I have a feeling there might be an exemption. I am currently away on leave and can check when I get back over the weekend.

@FinancialMadness

2 жыл бұрын

Hi Tilly, So reading the NHS Documentation here: www.nhsbsa.nhs.uk/sites/default/files/2021-08/NHSPensions_Glossary_of_commonly_used_terms_V2.0_202108.pdf It says _"If you’re a deferred member, your benefits will be based on your scheme membership and the best of your last 3 years’ pensionable pay or reckonable pay when you left NHS service or stopped contributing to the NHS Pension Scheme. The legacy 1995/2008 Scheme closed to new members with effect from 1 April 2015. All members who are currently in the 1995/2008 Scheme will be moved into the 2015 Scheme on 1 April 2022. You won’t lose any benefits you earned under the legacy scheme and you’ll keep your final salary link for benefits earned before 1 April 2022, as long as you haven’t had a break in service of more than 5 years between 1 April 2012 and 31 March 2022."_ As you have had a break in service for more than 5 years, that means your Legacy Pension will be based on your salary in 2001.

Thanks for the video, it was very clear and informative! Based on what you described, would it make more sense to opt out if I don't intend to work for the NHS in the long term? Let's say I was to only stay for another two years max. Appreciate it's difficult to say but just thinking conceptually. For a bit of background, I've worked for the NHS as a data and analytics professional for just over 3.5 years now, and most of career prior to this has been in the same field but in private sector. Based on where the more interesting things are happening in my field, my general career progression is more likely to take me back to private sector. Any help appreciated. Thanks.

@FinancialMadness

3 жыл бұрын

Hi Mogster, Thank you for your kind comments and apologies for the slight delay in my response. I do want to state for the record that, what I say below should not be considered financial advise, I would encourage you to do as much research as possible and seek out professional help before making a decision. I am assuming given the timeframe you have given me you are on the 2015 Pension Scheme. Some things to consider: 1. Since its introduction, you are no longer able to transfer out your NHS pension to another pension pot that is on the defined contribution (DC) scheme. Most of the private sector run on this DC scheme and defined benefits (which is what the NHS uses), is a rare find nowadays. So assuming you have been contributing for the 3.5years you have been working in the NHS, this money is essentially locked away and cannot be accessed until you reach your Normal Pension Age, OR there is a chance you can transfer it to another pension, if that too is running a defined benefits (DB) scheme. 2. What do you plan to do with the money instead if you are not contributing to your Pension? You always need a mechanism/pot of money that will be used for your later years, if its not going to be the NHS Pension, what will it be? It may not seem it, but two years can make a lot of difference in determining your retirement income. I would suggest looking into Investment ISAs or Personal Private Pensions (SIPP) as potential alternatives. If you decide to just leave your money in a normal savings account however, your money will just lose value overtime thanks to inflation. 3. NHS Pension is a final salary for life. Perhaps use the calculator is demo'd in this video or speak to someone with in the NHS to get an idea of what your Pension Benefits look like today and in 2 years when you decided to leave. You can then make a judgment on whether you are satisfied with the growth of your final salary pension between now vs 2 years. If you are then maybe consider keeping it, if not perhaps refer back to 2). The NHS also have a documentation on leaving the scheme, which is well worth a read: www.nhsbsa.nhs.uk/sites/default/files/2018-11/Leaving%20Early%20and%20Transferring%20Out%20Guide%20%28V16%29%20-%2011.2018.pdf I hope that makes sense and I have given you some room for thought. If you have any further questions on this, do let me know. Many Thanks!

@MogsterKupo

3 жыл бұрын

@@FinancialMadness Thanks for the advice. Don't apologise at all, you have no obligation to respond. I'll definitely consider those points.

Good information. I worked in UK 5 years, I am not UK citizenship, I am not sure if I have right for a pension if a live in a foreign country when I will retire

@FinancialMadness

3 жыл бұрын

Thank you. I am glad you found the video useful! Yes, that is something, I should have mentioned in video (Ha), as I know this is a concern for many NHS workers. Yes unfortunately, if you do plan to move abroad, there is no way to transfer your pension to another "overseas" pension scheme. However, it does seem you can transfer the money from the UK to your new foreign residency using oversea bank payments. (Usually, oversea payments do come with charges). More info here: nhsbsa-live.powerappsportals.com/knowledgebase/article/KA-04106/en-us However, I would check the rules for the country you plan to move too, as I know they too can impose restrictions. If you find, that Pensions still aren't the right option because of this, I would strongly encourage you find another means of saving your retirement. Check out SIPPs (they are another type of Pension, and you can find ones that allow you to transfer when you move abroad), or perhaps, consider putting some money away in a ISA, and you can close your ISA before you move away. I hope this helps :)

@PedroSanchez-zv1lr

3 жыл бұрын

@@FinancialMadness Thank you very much for the information. I left UK in 2005, so I don´t know if I have any kind of right. I will check it, Thanks again

@FinancialMadness

3 жыл бұрын

You are very welcome @Al 281. It is definitely worth investigating 😀

@FinancialMadness

3 жыл бұрын

Thank you @Miss Em. I am glad you found the video helpful :)

Hi I've had forms to fill in for my deffered pension I'm 54 I left NHS 2009 and was paying my pension for 22years due to circumstances I've had to applied for it earlier than normal I won't be returning to the NHS I realise there will be a reduction in my pension is it a big reduction as I don't understand the maths hope you can help I'm in the 1995 scheme thanks michelle

@FinancialMadness

3 жыл бұрын

Hi Michelle. thanks for the question. The normal pension age for the 1995 Scheme is 60 years old and seeing as you took it before this age then yes there will be a reduction in your Pension Benefits. There is actually a NHS Factsheet that provides some guidance on how much your benefits reduce by depending what age you took it out (link below). Assuming you started claiming at age 54, the guide suggests your Final Salary will reduce by 25%. So for example, if your Annual Final Salary was expected to be £20,000 at the normal pension age, claiming it a 54 will see a reduction of 25%. (£20,000 x 0.25 = £5,000). So your new 'Reduced Final Salary' will be £15,000 (£20,000 - £5,000). www.nhsbsa.nhs.uk/sites/default/files/2019-08/Early%20Retirement%20factsheet%20%2805.2017%29%20V3.pdf

@fransiscaweya1508

2 жыл бұрын

I worked for NHS between 2002 and 2006- do I fall under 1995 scheme Can I nominate my 6 year old grandson as my beneficiary and for how long will he receive some money if I die before him ?

I know the 1995 pension will be frozen but will it still rise with inflation? Thanks, very helpful videos!

@FinancialMadness

2 жыл бұрын

Yes. Even if you are not an active member of the 1995 Scheme, the pension benefits are still protected against inflation. You can find more information here www.bma.org.uk/pay-and-contracts/pensions/increases-to-your-pension/inflationary-increases-to-your-nhs-pension#:~:text=If%20you%20are%20an%20active,with%20pensions%20increases%20plus%201.5%25.