Blackmac wrote: Fri Jan 13, 2023 9:20 am
C69 wrote: Fri Jan 13, 2023 7:51 am
In the NHS there is a pension consultation to address the early retirement issue.
Loads of GPs and NHS staff on the 1995 pension scheme can in the next few years retire at 55.
It's a real issue which may be addressed with some of the new plans. However working conditions mean that tempting people to stay in a failing toxic environment where pay has been eroded will be the main issue.
One of the plans is for returning staff to be able to work more than 16 hours and to introduce partial retirement schemes and allowing people to pay into the new pension scheme on retirement.
I will certainly be looking into the outcome of the consultation.
I think If I can afford it I will be looking at partial retirement in a couple of years and retire fully at 60 at the latest
My wife is going next year at 55. Taking a couple of months off and returning to her post at 20 hours, which is what she works now. Likely for another 3 years. If she can start paying into the Cares scheme she likely will as it builds quite quickly. It would depend on how the treat them when they go after only a few year's contributions to the new scheme.
Only a few folk can retire at 55 ie mental health nurses and medics, in old scheme without incurring an actuarial reduction to their pension. On the old scheme it was retire at 60 without any reductions although you could work on to almost any age you wanted to subject to a ceiling. Subject to employer agreement even those retiring at 60 or older and taking their pension can return to work subject to an earnings limit on pension + salary. However as a retired person superannuation contributions are reduced to 4% to pay into a NEST pension, your employer will also pay 4% - this is a salary sacrifice saving scheme in effect. The main drawback with the new scheme is that it is aligned to the state pension age so although you might build up quicker any amount taken out prior to your state pension age will be subject to an actuarial reduction. It is ok if you plan to work to 66 or 67 or can leave it frozen and don't need the cash in the interim period.
Given the 'baby boom' within the nursing demographic many nurses have already decided to retire on old scheme when they could and to top up wages by working on the internal nurse banks which means they can pick and choose when to work and where they work, avoiding many of the high pressure or physically demanding areas - its hard work for a 60+ nurse! It is known that absence rate goes up by about 1/3% pa once nurses pass the age of 50. This is due to long term health issues mainly due to stress and exhaustion, musculoskeletal and other chronic diseases like diabetes, etc. Many just need a hip of knee replacement due to 30-40 years of walking, bending and lifting every working day = we in effect have run them into the ground. Increasingly thy are working for nurse and doctor agencies such as the biggest in the sector Medacs - which funnily enough is chaired by one Lord Ashcroft a tax exile, a major Tory donor and good mate of the Blonde Bumblecunt.
The problem for GPs and Consultants is the taxation thresholds for both annual and lifetime pension allowances. Given their pension is final salary they have little control over how both increase ie years worked and salary earned. In many cases just by continuing to work full time in the NHS they can exceed either or both and will then get big bills from HMRC. Taking on additional duties or responsibilities will just bring a bigger tax bill. I know of one case where a senior doctor who had worked all his life for NHS was asked to take on a Director role which in turn meant an additional payment - his HMRC bill that year was for in excess of £150k. He retired. The only way for these guys is to reduce tax bills is to reduce their NHS hours and thus reducing their pension years (ie working only 3 days a week = 60% of a pension year). Another way is to volunteer for a wage cut by coming out of scheme and losing the employers contribution to the pension scheme which for these guys is c15% - this would be on top of the real term 11%+ cut in their wages since 2010 . Given many have been in the NHS their whole career then they reach this point about the age of 55, sometimes earlier. The Gov is in effect making these guys pay to come to work for the NHS!
In effect if these senior docs reduce their hours but wish to maintain their salaries but avoid their pension tax bills then they need to find work which is not superannuable or not with the NHS. Setting up a small 'personal services company' or suchlike and then working privately is a route many then go down. This is the Gov in effect providing a steady stream of doctors to staff the private sector.
Many will argue that these doctors get paid a lot anyway and why should we change taxes to make it better for them - think about that when you are on the waiting list for an operation or having an operation with a surgeon who hasn't done many of the complex operation you are going to have. In any other industry these guys - who take a minimum of 10-15 years to fully train up would be protected and rewarded as the key earners of the business - currently our Gov just tells them to fuck off!
PS I am not a doctor!
