In this video, we cover everything you need to know about the 2023 update to the NHS Pension. Leave any questions you have in the comments below, and subscribe for more content like this!
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Timestamps
00:00 Introduction
3:33 Budget Headlines
5:12 Annual Allowance
8:36 Annual Allowance Taper
15:12 Negative Growth
19:23 Lifetime Allowance
29:32 Common Mistakes
33:20 NHS Pension Report Service…(read more)
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NHS Pension Explained – 2023 Update
The NHS Pension Scheme is a significant benefit for healthcare professionals in the United Kingdom. It offers financial security after retirement, ensuring that those who have dedicated their careers to providing quality healthcare are taken care of in their later years. As with any pension scheme, there are certain intricacies and updates that need to be understood. In this article, we will delve into the NHS Pension Scheme and the changes that have been introduced in the 2023 update.
The NHS Pension Scheme is a defined benefit scheme, which means that the benefits received are based on the length of service and the NHS salary at the time of retirement. This scheme is regarded as one of the most generous public sector pension schemes, providing a stable income for retirees.
Starting from April 1, 2023, the contribution rates for members of the NHS Pension Scheme will be changed. The rates will vary depending on the individual’s income level, ensuring that higher earners contribute proportionally more. This update aims to make the scheme more sustainable while maintaining its core benefits.
It’s important to note that the NHS Pension Scheme has different sections, each with its own rules and regulations. The main sections include the 1995/2008 Scheme, the 2015 Scheme, and the 2015/2021 Scheme. Members are typically placed in the appropriate section based on their date of joining or previous membership. Up until April 1, 2022, members of the 1995/2008 and 2015 Schemes had two separate pension accounts. However, the 2023 update introduces a single pension account for all members, simplifying the process.
Another significant change in the 2023 update is the introduction of the retirement flexibilities. Members will have the option to choose when and how they access their NHS pension benefits. This means that individuals can decide to retire partially, working reduced hours while accessing a portion of their pension. This flexibility allows for a smoother transition into retirement, giving individuals more control over their financial planning.
Additionally, the 2023 update includes a new pensionable pay cap. This cap limits the amount of pensionable pay that can be used for calculating retirement benefits. From April 1, 2023, the cap will be set at £189,014, with annual increments in line with inflation. Any amount over the cap will not count towards pension calculations, ensuring that the scheme remains fair for all members.
It’s worth mentioning that these updates may not affect all members of the NHS Pension Scheme equally. Individuals may need to consult with their pension administrators or financial advisors to understand how these changes will impact their specific circumstances.
Overall, the 2023 update to the NHS Pension Scheme aims to balance the long-term sustainability of the scheme while providing flexibility and stable retirement benefits for members. Understanding the changes and how they apply to individual circumstances is crucial for healthcare professionals as they plan for their future. With the NHS Pension Scheme’s continued commitment to providing financial security, healthcare professionals can retire with peace of mind, knowing that their years of service have been recognized and rewarded.
Thanks so much! Just one question, what is the earliest you can request a closing value on pensions. For e.g. if im also contributing to a sipp and want to be withing my aa, the last date to deposit a sipp is also the 5th apr. Can closing values be requested calculated earlier than this?
Great great info but it will be nice to have a real case Scenario of a Band 6 Mid Band normal NHS worker and estimate final salary pension at 57, 60, 65, 68 years old since many people do not want to retire at 68! NHS pension is a mess, paralysis by analysis, and need a clear cut example to understand and what the options available are. Too many ERRBO, AVC, etc…
My husband in the Private Sector and understanding Salary Sacrifice AVC is so so simple. You need a lawyer and accountant combined to understand the NHS. I think it's on purpose somehow 🙂
Is the pension savings statement you show available on TRS? Thanks
I swear the NHS is a scam.
Great video thanks
I have a question…
My NHS Annual salary is 72000 before Tax and NI….
So regarding my contribution to pension will be before OR after Tax ?
Thanks so much! This is the clarity / understanding I've been trying to get to unsuccessfully for about 3 yrs! Guide is super helpful too – extract and TRS requested…. Bit of tangent question. One of the podcast previously, I think mentioned ERRBO – and that doing so may fix your pension age rather than keep it linked to the state pension age….. but I've struggled to find evidence for this anywhere since – did I misunderstand this is or is that true? TIA
im an FY2 if i leave to fully move to australia will i have wasted all my money i paid the last 2 years 🙁 wish i had opted out
I was seriously injured on duty & abandoned by Poole hospital, they told lie after lie .I proved I was injured on duty & 13 years later finally received the permanent injury pension, yet not one pen pusher fired for lying to NS pensions & to pension ombudsman. I still have issues as feel im under paid the injury pension. NHS staff are treated as cannonfodder
with new rules since Oct, my salary is 26520 (2210 a month), is this the figure used to calculate my contributions, or if I do overtime is this added to the figure to work out my contributions? (IE I earned £2543 last month and paid £249.24 in contributions) but 8f its just based on salary i should of only paid £170.17.
So helpful thank you
Are these calculations just for Medics in the NHS?
Can you take the 1995 pension if your not paying into it,or retire and return
Thabk you for helpful content.
Could you help me with this query. If you only work as a Bank staff and have pension contribution deducted at 6.8%. How is the annual pension calculated. I understand usually its 1/54th of pensionable pay/yr but what calculation is done when you don't have a defined salary as working via Bank?
Hi , I am a consultant and having contributing to 2 pensions . I have been working as full time in As Consultant in 1 trust , paying 13.5% pension in this trust. I have beeping also doing some emergency on call shifts in my previous trust as NHS bank and also contributing 9.5 % pension contribution , for last five hrs. I am in 1995 pension scheme . My question .. will my earning as nhs bank shift , about 35 – 40K per year , will added in my final year salary , pension benefits.. Thanks
When you are calculating your threshold income and you are including income from rental of property, do you use the gross figure or are their deductions as on your self assessment. Eg if you charge the tenant £1000 a month this is your gross income but on your self assessment you deduct allowances eg for servicing interest or fees associated and some for upkeep or repairs etc. Is the net table rental income that you put on your self assessment what you use when you are calculating the threshold income for purposes of seeing if you are tapered?
Thank you, really clear explanation
shame the audio is so poor. Try and invest in some proper microphones
I have exceeded my LTA and therefore pay a charge on my DB NHS pension. With LTA now being removed will I have to still pay any charge if I crystallise a separate private pension?