NHS Pension explained - 2023 update

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

[@Ben_Chode_420]

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 :)

[@jumpkeeable]

You are a legend. Why is this info free? Thank you 🙏🏾

[@MedicsMoney]

Thanks for the kind feedback.

[@lywc82185]

So helpful thank you

[@ramghasil4666]

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

[@alanchoo-kang3526]

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?

[@lamassey9]

Thank you, really clear explanation

[@MedicsMoney]

Glad it was helpful!

[@chrisheavens2812]

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?

[@hannahcasson2921]

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

[@MedicsMoney]

Glad it helped! We definitely discussed ERRBO on the pod but I can’t remember which episode. Maybe we’ll do a YT vid about it.

[@andywebster8521]

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.

[@user-th2oo7qc6c]

As part of the Mccloud remedy question sent to me I have been asked whether I wish to go back to the 1995 legacy scheme or stay with the 2008 legacy scheme which I switched to at the time or original asking. I have been told that I will be asked at retirement whether to have the remedy period in the legacy scheme or the 2015 scheme and that will be with figures. However I have not been presented any figures now to judge which legacy scheme is best for me. I had this same dilemma when I originally had to choose. I have not seen any advice given on this aspect on the Mccloud judgement. I plan to retire at 62 and so am thinking the 1995 scheme would be best for this as there would be no early retirement penalty and I am also planning to only take the 2015 pension upon reaching that NPA of 67.

[@arhantraja8735]

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?

[@MedicsMoney]

Thanks for kind feedback. This is a useful factsheet www.nhsbsa.nhs.uk/sites/default/files/2017-03/Part%20Time%20Membership%20FAQs%20V3%2004%202014.pdf

[@beverleysilcock9135]

Can you take the 1995 pension if your not paying into it,or retire and return

[@ian4102]

Is the pension savings statement you show available on TRS? Thanks

[@MedicsMoney]

Details in description

[@APTAMITRA1]

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?

[@MedicsMoney]

We've made a video to answer your question here kzbin.info/www/bejne/gp2qeWuhrbeGjJosi=QHeTHbloBrq9XbMR Hope it helps

[@savvyshopper1286]

Are these calculations just for Medics in the NHS?

[@jasonsomerville2504]

Really interesting thaank you, still finding the whole pension outcomes calculation quite confusing, Ive been in NHS since 95, so 95 scheme, 2008, 2015 scheme now ...dont quite get best options for ensuring stable and correct income for me as I approach last 5-8 years before looking to retire... the Mcloud outcome as well has added a decision complexity that i don't quite understand...would be great to have a session on this please

[@MedicsMoney]

It is confusing. Does this help? www.medicsmoney.co.uk/what-does-the-mccloud-judgement-mean-for-my-nhs-pension/ Also this kzbin.info/www/bejne/pXfKd6aEnryfY5Isi=IAAKSOsRhEJ5oGaR

[@paediatriciandoctorzahidhu8360]

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 ?

[@MedicsMoney]

Your contributions will be before tax, hence why pensions are described as tax efficient. If you pay tax at 20% a £1 pension contribution will cost you 80p If you pay tax at 40% a £1 pension contribution will cost you 60p The amount you contribute depends on your salary www.nhsbsa.nhs.uk/member-hub/cost-being-scheme Hope that helps?

[@TamaEnergy]

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

[@MedicsMoney]

Not necessarily- options www.nhsbsa.nhs.uk/member-hub/leaving-or-taking-break-scheme

[@pmarmify]

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

[@MedicsMoney]

Sorry to hear this. Hope you're doing ok.

[@paediatriciandoctorzahidhu8360]

Hi Thanks for Nice Video.... I am joining NHS with Salary of 93000/month before Tax... Please Calculate NHS Contribution per month and My Contribution per month based on this salary.....

[@MedicsMoney]

We've made a video to answer your question here kzbin.info/www/bejne/gp2qeWuhrbeGjJosi=QHeTHbloBrq9XbMR Hope it helps

[@suhairalwan3207]

I hate pension , they make it so complicated and I constantly feel like a fool ...I just wish they pay us gross and leave us alone 😔

[@MedicsMoney]

Stick with us and our videos will explain it. Pensions are much easier than medicine but agree it’s got wayyyy too complicated now.

[@johnboyginger]

How on earth is anyone meant to understand their NHS pension? It’s deliberately complex.

[@MedicsMoney]

It is complex but it’s also really important to understand it so you can maximise its benefits. You work hard in the nhs, make sure you get the nhs pension you deserve.

[@mouseymedic]

shame the audio is so poor. Try and invest in some proper microphones

[@johnboyginger]

Sounds fine to me. Maybe you invest in some decent speakers/headphones you troll.