Today we explore the implications for members of potentially working longer and the options being introduced within the NHS Pension Scheme to allow greater retirement flexibility.
There are options within all Sections of the NHS Pension Scheme which should allow for a greater flexible approach to retirement within the NHS.
- Wind Down; giving members the option to work fewer hours or days in their current post rather than retiring completely.
- Step Down; allows members to move to a lower grade or less demanding post but allowing the higher previous salary to be used as a basis for final salary pension calculation.
- Draw Down; allows members in 2008 Section and 2015 NHS Pension Scheme to draw down some of their benefits yet still continue in NHS employment.
- Another option within the 2015 NHS Pension Scheme (for those with 2008 Section benefits) will be to allow members with a Normal Pension Age of over 65 to pay additional contributions to remove an actuarial reduction for taking pension benefits early meaning that they could take their full 2015 and 2008 benefits at 65.
- Additional Pension; The facility to puchase additional pension remains. This could mean that you could fund the difference in the actuarial reduction for taking your pension early. The minimum additional pension that can be purchased is £250 and the maximum is £6,500. This can be financed through a lump sum investment or by regular contributions.