Every Friday we aim to post an answer to a FAQ about mortgages, tax, investments, money matters, business or retirement. You can have your say too. Send an email with your FAQ to [email protected]
This does not constitute advice and advice should be sought in all instances before acting on it.
Q. I have an NHS pension, why would I need a private one?
Answer: If you have been paying into your NHS pension for years, or are just starting out in your career and have recently joined the scheme, you may be asking yourself why do I need a private pension as well?
The simple answer is that the money in the NHS scheme may not be enough for you to live comfortably off throughout your retirement.
This does not constitute advice and advice should be sought in all instances before acting on it.
Rising costs and stagnant wages mean that the money you have set aside may not go as far as you hoped. A report in The Guardian highlighted that one in four retires are still burdened with paying off a mortgage and other debts during retirement.
It could also be that you decide to take retirement early and find that you can’t access your NHS pension until a later date. The age at which you can access your NHS pension depends on what scheme you are a member of.
You’ve worked hard, so you deserve to have a retirement without worrying about money and a private pension can help you do this.
Choosing a pension
Whilst it is never too late to start a pension, the sooner you start the more time you have to pay money into it. Plus, starting it early, means you can build it into your routine.
We highly recommend that you seek expert advice before choosing a private pension. There are many different options available on the market and it can be difficult to know which one is the best for you.