"The majority of UK doctors build their core retirement income through the NHS pension scheme. The current system is a career-average revalued earnings scheme, often referred to as CARE. It replaced earlier final salary arrangements and applies to most doctors still actively contributing. In a CARE system, each year of pensionable earnings is recorded separately, then revalued annually in line with inflation plus an additional fixed percentage. The total of these yearly amounts forms the final pension."
"Normal pension age in the 2015 version of the scheme is linked to the State Pension age, which is 67 for most doctors retiring in the 2030s and 2040s. Doctors can claim earlier, usually from age 55, though doing so results in actuarial reductions. Later retirement is also possible. This slightly increases the value of the pension, because fewer years are expected to be paid out."
Doctors commonly rely on the NHS pension scheme as their principal retirement income, structured as a career-average revalued earnings (CARE) system where each year’s pensionable pay is recorded and revalued annually. The 2015 scheme ties normal pension age to State Pension age, around 67 for many retiring in the 2030s–2040s, with options to claim from 55 subject to actuarial reductions or to defer for marginal gains. Contribution rates are tiered by pensionable pay, roughly 5% for lower earners and over 13% for higher earners, with employer contributions exceeding 20%. Effective retirement planning combines public provision, private arrangements and tax-aware strategies to manage irregular incomes and rising living costs.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]