It might seem a herculean task to keep track of your pension on top of everything else you deal with as a busy dental or medical professional. Especially at the moment, with further lockdowns due to COVID, it’s probably just another thing to handle. But it doesn’t need to be that difficult!
This does not constitute advice and advice should be sought in all instances before acting on it.
Here are a few tips to help you keep an eye on your pension:
Check the worth of your NHS Pension
Your Total Reward Statement (TRS) will tell you the current value of your NHS pension, and some of the figures used in the calculations. Your TRS is updated twice a year and can be accessed here. This information helps to work out what your pension and any associated Annual and Lifetime Allowance tax liabilities might look like until you retire.
Check for other benefits
Often, doctors and dentists aren’t aware that their NHS Pension provides other benefits both while you’re alive and once you’ve passed. Valuable benefits such as an Ill Health Retirement Pension (a calculation based on the number of years you’ve worked, the severity of your illness, and how it affects your ability to work) and Life Cover (death in service) for spouses, children, and couples who have been together for longer than two years and are financially dependent.
There’s no need to complete a pension nomination form to ensure your pension benefits go to your spouse or civil partner, they will automatically pass to them when you die.
If you’re not married or in a civil partnership but still want your benefits to pass to your significant other, you’ll need to complete a form, easily attainable by your financial adviser or the NHS Pensions Agency.
Keep up to date on legislation changes
Over the last decade, there has been a slew of legislative changes to pension and tax rules.
Here’s a bit of a refresher for NHS retirement age based on your scheme:
- 1995 NHS Pension Scheme – Age 60
- 2008 NHS Pension Scheme – Age 65
- 2015 NHS Pension Scheme – Linked to your state pension age
There will inevitably be an impact from the result of the age discrimination issue in the 2015 Firefighter’s pension scheme, so that’s something to be aware of.
The state pension age is likely to rise in the future, some predicting that it could eventually increase to 70 for those now in their twenties.
Check your service history
If you’re not sure if the NHS Pensions Agency has your updated service, be proactive, and check that they do. And don’t leave it to the last minute—the earlier, the better.
Plan with a professional
Before you plan for retirement you need to know what your expected pension is likely to be and what your expenditure over the years is going to be. To save a lot of trouble and time, you can work with a financial adviser, who will help keep track of your pension as well as all your other financial planning needs so you’ll be able to lead the lifestyle you want once you retire. Contact us to get started.
Unsure about pension planning?
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