Thousands of doctors missing pension pay
Doctors unaware of pension rule changes
By Edie Bourne
Many senior doctors are still unaware that working beyond the normal retirement age of 60 if they have benefits in the 1995 Section of the NHS Pension may mean missing substantial payments.
New retirement flexibilities last year were brought into the NHS Pension Scheme, which mean doctors could claim retirement benefits from the 1995 section while continuing to work.
But many pension scheme savers have not claimed these payments, which are not backdated. If they are not taken, they are lost.
Samuel Kirton
Samuel Kirton, financial adviser with specialists Cavendish Medical, told Independent Practitioner Today: ‘In 2022, the 1995 Section was closed and all active members moved to the new 2015 Scheme. At the time, doctors could retain their benefits in the legacy scheme, but not accrue any further benefits.
‘When the new retirement flexibilities were introduced last year in a bid to retain more senior medics, this rule was changed. Now, members can claim benefits from their old pension scheme while continuing to build benefits in the new 2015 pension.’
He explained that the doctors impacted were likely to be in their 50s and 60s. The normal retirement age for the 1995 Section is 60, but some roles with specialist status can retire at 55.
‘Of course, like many things within the NHS Pension Scheme, it is not entirely simple to navigate claiming the benefits. Doctors can either take partial retirement, which means reducing their pensionable pay by 10%, or use “retire and rejoin” which involves leaving the workforce temporarily.
‘Both options require a significant amount of paperwork and, crucially, agreement from the employing trust, which is not always straightforward.’
Mr Kirton advised doctors to always seek expert guidance when planning their retirement to ensure they were making the most of all opportunities and not missing out of any financial benefits.