When you truly understand all the options available to you that could help you provide a pension later in life, you set yourself up for future success. But it can be difficult to know which pension scheme is right for you, and even what to do once you make your decision.
Find out more about NHS pension options in this collaborative article between Dental & Medical Financial Services and MediFinTech. Plus, learn about a new tool that aims to make the whole pension planning process a little easier.
This does not constitute advice and advice should be sought in all instances before acting on it.
Schemes Overview
NHS Pension Scheme (1995) – This scheme accepted members from 1995 to March 31, 2008.
Members accrued benefits based on their final pensionable pay at retirement and years of service. This scheme offers a defined benefit, meaning the pension amount was determined by a formula based on your earnings and years of service.
NHS Pension Scheme (2008) – The successor to the 1995 scheme, this was introduced on April 1, 2008, and was open to new NHS employees at that time. Members accrued benefits based on a career-average revalued earnings (CARE) formula. CARE schemes take into account a percentage of your earnings throughout your career, adjusted for inflation. This means that pensions are calculated based on average earnings over the entire career rather than just final salary.
NHS Pension Scheme (2015) – This most recent scheme was introduced on April 1, 2015. It is also a CARE scheme, like the 2008 scheme, and members accrue benefits based on a percentage of their pensionable earnings over the course of their career. It differs from the 2008 scheme in that it has a higher accrual rate and features a new normal pension age, typically the State Pension Age.
For an in-depth exploration of the various NHS pension schemes, check out this excellent webinar by MediFinTech
Alternatively, you can download the presentation slides in PDF for reading at your leisure.
NHS pension modelling for the future you want
MediFintech are the premier technical specialists on all matters concerning NHS pensions providing unrivalled NHS pension support for NHS pension members, Financial Advisers & Accountants, Professional Organisations / Associations and NHS employers. Their aim is to help demystify NHS pensions and the interplay with complex pension taxation and legislation.
In that vein, they offer cutting-edge NHS pension modelling — the process of creating a financial model that simulates the future value of an NHS pension based on various inputs and assumptions. For any NHS pension members who are currently considering their retirement options or who simply just want to understand what their pension could look like in the future, NHS pension modelling can be an invaluable tool.
The report projects your NHS pension to your chosen date of retirement, taking into consideration factors such as Annual Allowance, Scheme Pays, Lifetime Allowance, as well as the McCloud remedy and Annual Allowance reassessment. You can model up to five scenarios including, but not limited to:
- Partial retirement
- Retire and return
- Mccloud re-assessment
- Early/Late retirement
- Dropping PA’s/Sessions
- Taking additional responsibilities
- Pay protection (for loss of CEA, Management allowances, restructures)
- Leasing cars
Holistic approach to your pension planning
In collaboration with MediFintech, Dental & Medical Financial Services wants to leave no stone unturned when it comes to your pension plan.
While, of course, you could try to model the various scenarios by yourself, you’re not an expert. Plus, it’s time-consuming and requires extensive knowledge and expertise. That’s where MediFintech’s modelling tool shows real value in the information you will have available to enable you to make educated choices about your NHS pension.
Dental & Medical Financial Services are even offering £100 contribution towards MediFintech services as an incentive to try out the program.
After you have taken advantage of the services of MediFintech, DMFS provides advice and guidance based on the various scenarios presented in the model.
Exclusive for Dental & Medical Financial Services clients, MedFintech has set up a dedicated registration link. Upon completion of registration, you will get an email outline exactly what’s needed for them to produce the report.
Pension planning made easy
Are you ready to become informed about this often complex area of retirement planning?
Get started with pension planning with an NHS pension model from MediFintech and follow it up with personalised and advice from the experts at Dental & Medical Financial Services to ensure that you are not only on the right path to your pension, but that you utilise it in the best way once you get there. Get in contact with our team for more information.