NHS Pension Transfers

16% of NHS workers, that’s nearly 250,000 members, opted out of their NHS Pension Scheme between 2015 and 2017. Many of them reportedly unaware of what they were giving up. It’s thought financial pressures and a lack of understanding of the benefits involved with a final salary scheme such as the NHS Pension Scheme, have created this so-called pension transfer influx.
Former pensions minister Sir Steve Webb even came out and said that the NHS needed to “…take urgent action to tackle this epidemic of pension opt-outs” as the risk of NHS workers facing “retirement poverty” becomes a real threat.

9x worse off

Members have been subject to a freeze on take home pay in recent years and it is thought this was a major factor in people opting out. However, the short-term gain of more money each month may mean some members are 9x worse off in the long term regarding their pension value. Younger members aged between 26-35 were the highest group to leave the scheme.

Valuable Benefits

There’s also been a significant increase in the number of Doctors leaving the NHS pension scheme or taking early retirement. A change in rules which meant some may face additional tax charges by staying in the scheme, however, it is thought that they could miss out in valuable benefits which would be greater than these tax charges.

These benefits may include a guaranteed income for life during retirement as well as benefits for your family in the event of death. Also, many grow in line with inflation and don’t have extra running costs like many private pensions do.

Bad advice?

It’s rarely the case that transferring from a final salary scheme is a good move, so if you were advised by a financial adviser to transfer your NHS pension, you might want to get that advice double checked as it may affect your nest egg. It may also be mis-selling and you could have a case to make a claim for compensation.

To arrange a free consultation at a convenient time, please fill in the enquiry form. Or call 0114 2664216

Important Information!

You are not required to use our services to pursue your claim. You can also seek further advice or shop around subject to any time limits within which a claim must be made.

It is possible for you to present the claim for free, either to the firm or person against whom you wish to complain or to the statutory ombudsman (Financial Ombudsman Service or Pension Ombudsman Service) or the Financial Services Compensation Scheme, whichever is applicable to your claim.

We will not make or pursue a claim, or advise you to, if we know or have reasonable grounds to suspect that the claim does not have a good arguable basis, and or is fraudulent or frivolous.