NHS Pension - worth creating a separate private pension?

[rossub]

I’ll keep it simple...

My NHS pension takes 12.7% of my gross salary, but this leaves about £9k that’s still subject to 40% tax. Is it worth looking into a private pension as well that takes advantage of the tax relief available?

I’m aware that I can increase the NHS pension contribution, but I don’t want to wait until I’m 68 before I can access it like the rest of it!

[markiii]

Absolutely yes

[CoolHands]

If it’s like the teachers one you can still claim it early, you just suffer a reduction depending on how early you take it. Therefore I’d probably add APCs to your existing pension, after reading up on it.

Edit also look at ERRBO to allow you to retire at 65 at less cost than the reduction otherwise.

Edited by CoolHands on Monday 25th December 12:55

[rossub]

Interesting... I wasn’t even aware of ERRBO. Seems I can retire at 65 for an extra 4% of salary, so definitely worth comparing that with other options.

[The_Doc]

rossub said:

I’ll keep it simple...

My NHS pension takes 12.7% of my gross salary, but this leaves about £9k that’s still subject to 40% tax. Is it worth looking into a private pension as well that takes advantage of the tax relief available?

I’m aware that I can increase the NHS pension contribution, but I don’t want to wait until I’m 68 before I can access it like the rest of it!

at 12.5% contribution level, you might find some investment advice is useful. I use a guy who specialises in Medics, I've benefited from him for 18 years now. I could give you his name..

[rossub]

Thanks... unfortunately I’m not clinical staff, so while my salary is decent, I’m at the top of my pay scale now with no other earning opportunities

I’m thinking of buying a couple of years back through ERRBO to age 66, but retiring at 63-64 using the bit of my pension and lump sum I can actually take from age 60. I’d be quite happy on £20-25k for a couple of years if there’s no mortgage.

Working until late 60s just doesn’t bear thinking about.

[elanfan]

Get yourself over to HL.co.uk and search SIPPS - you don't need to login there's loads of free information, suggested model investments, recommendations on funds etc You can apply online, fees are pretty fair and they e negotiated introductory discounts with many fund managers which effectively reduce your fees. Other such companies are about but these are a huge and a quoted Plc with billions invested through them.

Your choice as to risk with funds you choose but an opportunity to build quite a fund to take just about how you like. DYOR etc