In our weekly series, readers can email in with any questions about retirement and pension savings to be answered by our expert, Rachel Vahey, head of public policy at investment platform AJ Bell. There is nothing she does not know about pensions. If you have a question for her, email us at money@theipaper.com.
Question: I work for the NHS. Is it easier if I claim my pension while I am still working or can I claim it after I have left the NHS?
Answer: Many people think you have to stop working before you can take your pension, but that’s not always so. In most cases, you can access your pension from age 55 (rising to age 57 from April 2028).
The NHS pension scheme is a defined benefit scheme – often known as a gold-plated scheme because of how generous they are. This type of pension promises to pay you a pension income and possibly a tax-free lump sum from your retirement age – the “normal pension age”.
You can usually take your pension benefits from an earlier age, but your payments may be reduced in value. Likewise, you could delay taking your benefits until after the normal pension age, and your benefits may be increased, depending on the scheme rules.
