Portfolio careers and retirement

The way doctors work is changing…

We know the challenges that come with clinical work. Long hours and patient demands can lead to burnout and have you craving flexibility.

You might want to dip your toes into a different line of work, whether that’s to broaden your horizons, boost your income or find a better work-life balance. Perhaps you’ve already taken on multiple roles throughout your career, splitting your time between NHS work and private practice.

Working this way is known as a portfolio career. A portfolio career is where you take on different lines of work outside of your regular role. For example, you might use your experience to go into academia, research or follow one of your passions. If you’re looking for something more profitable you may take on private work, such as dermatology or aesthetics. And if you’re craving a bigger change, you might dip into public health initiatives or even police work.

While a portfolio career has an array of benefits, it’s not without its challenges.

What are the implications?

Financial instability and more complex financial management are two things to consider with portfolio careers. You may find yourself juggling multiple income streams and potentially multiple pension pots. If you’re freelancing or taking on ad hoc work then your income may fluctuate, making it harder to put financial plans in place.

If you’re interested in learning more about the advantages and disadvantages of a portfolio career, you may wish to read our roundtable whitepaper. Our detailed report shares the real-life experiences of 200 GPs and hospital doctors, as well as medics from our Members Advisory Board.

How could a portfolio career affect your retirement?

When you’re thinking about how you can broaden your career in the here and now, you may not be thinking about the impact this could have on your retirement planning.

Changes to your working hours, earnings or pension contributions will all impact your retirement plans. Which is why it’s always wise to revisit your plans whenever you face a big career change.

The impact on your NHS Pension

If you’re part of the NHS Pension Scheme, taking a step back from your work in the NHS will likely affect your pension. Fewer hours mean less pension contributions, equating to fewer benefits when retirement arrives. As well as a lower cash value, it’s likely your in-service death benefits and sick pay will be reduced too. In this case, you may want to bridge the gap with a personal income protection policy.

If your NHS income has been reduced but you’re earning an income from private or locum work, you may want to look afresh at how best to save for your future. This might mean starting a private pension to supplement your lower NHS contributions or making additional voluntary contributions into a separate pot.

There’s also investing to consider, whether that’s through a Lifetime ISA, a Stocks and Shares ISA or even investing in funds. Investing gives your money the opportunity to grow, allowing you to accumulate wealth for your retirement if you end up with good returns.

Remember, investments can go down in value as well as up, and you may get back less than what you put in.

Moving your retirement date

If a portfolio career reignites your spark, you may want to work for longer than you originally planned. Alternatively, stepping back from clinical work might give you a taste of the leisurely days ahead.

Moving your retirement date either way will need to be factored into your retirement planning. This will help you understand how much you need to save, and at what rate, to get the retirement you desire. If you end up earning more from taking on private work, you may be able to retire sooner than you expected.

Why it pays to plan

When it comes to your pension and retirement, it can pay to get guidance.

At Wesleyan Financial Services, our Specialist Financial Advisers can help you with your pension and retirement income, helping you formalise a plan to get you where you want to be. And if you’re considering a portfolio career or already have one, they can help you understand the implications on your financial future.