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Understanding your NHS Pension Benefits


The NHS Pension Scheme can provide you and your loved ones with excellent benefits and income in retirement (including a lump sum, which you may choose to invest). But when it comes to understanding exactly what you're entitled to, things can get a little complex.
 
It's important to understand how your individual circumstances affect what you're entitled to as you may need to take action today to help make the most of your future finances.

Are you aware of some of the latest scheme and allowance changes that could affect your benefits?

Changes to the NHS (England and Wales) Pension Scheme regulations: The Department of Health and Social Care recently consulted on various changes to the NHS (England and Wales) Pension Scheme regulations. Amongst the recommendations were:


  • Providing civil partners and same sex spouses with the same survivor pension rights as widows
  • Introducing a new contribution rate of 20.6% for employers from 1 April 2019
  • Renewing current member contribution rates so that the same rates continue to apply beyond 1 April 2019.
These proposals have now been accepted and will take effect from 1 April 2019.

Pension Lifetime Allowance: There's an overall lifetime allowance, which sets a limit on the amount you can accrue in your pension pot(s) over your lifetime without incurring a tax charge. Excess benefits taken as a cash lump sum could be taxed at a rate of 55% (and 25% if taken as a taxable income).

From 6 April 2019, the lifetime allowance will increase in line with the Consumer Price Index, to £1,055,000 - up from £1,030,000 in the 2018/19 tax year.

Your Pension Benefits: The NHS has issued guidance to employers to help those who wish to take their NHS pension benefits, and then return to work for the NHS. One of the main aims is to support NHS staff in making the transition from work through to final retirement by taking a position with reduced responsibilities or working reduced hours.

Your NHS Pension Lump Sum: Did you know that you can choose to exchange some of your NHS pension for a lump sum (or if you are a member of the 95 section an increased lump sum)? If you choose to do this your pension will be reduced by £1 for every £12 of lump sum you choose to receive. There is a limit on the amount you can exchange without incurring a charge, which is set by HMRC.

We're here to help
The NHS Pension Scheme can be complex to understand. Fortunately, Wesleyan Financial Services Consultants are specially trained to understand the scheme as well as your financial needs as a doctor.  We can advise on how to maximise the benefits you're entitled to and minimise your exposure to any unnecessary tax charges.

Take advantage of a no-obligation review of your finances, please get in touch to arrange an appointment at a time and place to suit you: financialreview@wesleyan.co.uk  ref: 1001305

Advice is provided by Wesleyan Financial Services Ltd. 'WESLEYAN' is a trading name of the Wesleyan Group of companies. Wesleyan Financial Services Ltd (Registered in England and Wales No. 1651212) is authorised and regulated by the Financial Conduct Authority and is wholly owned by Wesleyan Assurance Society. Wesleyan Assurance Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Incorporated in England and Wales by Private Act of Parliament (No. ZC145). Registered Office: Colmore Circus, Birmingham B4 6AR. Telephone calls may be recorded for monitoring and training purposes.

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