NHS Pension Scheme – Early Retirement

NHS-Pension-AgencyThe following options are available to those who wish to retire from the NHS Pension Scheme early.

You may wish to retire earlier than the normal scheme retirement age of the NHS and although this can be done, hefty reductions will be imposed.  The following table illustrates these reductions in pensionable income as a percentage:

Age

64

63

62

61

60

59

58

57

56

55

Pension

5%

11%

15%

19%

23%

27%

31%

34%

37%

40%

Source – http://bma.org.uk/practical-support-at-work/pensions/faq-voluntary-early-retirement

Should Doctors wish to retire early, they could lose up to 65% of their final salary – roughly what a Foundation Year Junior Doctor earns today!  In retirement doctors are more likely to still have dependent children and a mortgage, due to having started their commitments late. The rise in standard of living in your career is likely to be smooth – this sudden drop in salary often forces people to continue working against their wish and/or ability.

You must bear in mind that the NHS pension was created using an extremely ‘broad brush’ and is therefore not specifically designed for doctors.