NHS pension modelling is the process of creating a financial model that simulates the future value of an NHS pension based on various inputs and assumptions. This can be a useful tool for NHS pension members who are considering their career choices or retirement options and want to understand the potential future value of their pension.
There are several benefits to NHS pension modelling, including the following:
It allows members to see the potential future value of their pension based on different scenarios, such as different retirement ages or changing career & service patterns. This can help them make more informed decisions about their career choices and retirement plans.
It can help members understand the impact of different factors on their pension, such as salary increases or changes in the pension rules. This can help them plan for potential changes and ensure that they are taking advantage of all available opportunities and not sleepwalking into unnecessary taxation
It can help members and their professional advisers identify any potential gaps in their pension planning, such as inadequate retirement savings. This can allow them to take corrective action and ensure that they have a sufficient income in retirement.
It can help identify any potential errors in a member's historic pension record by reviewing historic calculations for anomalies in service patterns Overall, NHS pension modelling can be a valuable tool for members, and their professional advisers, who want to understand the potential future value of their pension as well as the implications of the McCloud remedy, lifetime allowance taxation and annual allowance taxation. Our NHS pension modelling projects your NHS pension to your chosen date of retirement. The projection considers factors such as Annual Allowance, Scheme Pays, Lifetime Allowance, as well as the McCloud remedy and Annual Allowance reassessment. We can also model any scenario too, for example the impact of a salary sacrifice lease car.
Modelling your own NHS pension can provide a number of advantages, such as helping improve your own knowledge of the NHS pension schemes. There is a lot of information available online to help you understand the NHS pension, such as https://www.nhsbsa.nhs.uk/nhs-pensions.
There are also online tools available, such as NHS Employers Annual Allowance Ready Reckoner and the BMA Goldstone pension modeller
However, there are also some significant disadvantages to modelling your own NHS pension. For example, it can be time-consuming and require a significant amount of knowledge and expertise.
Additionally, there is always the risk of making mistakes or misinterpreting information, which could have negative consequences for your pension. It is important to carefully consider the pros and cons before deciding to model your own NHS pension.