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Where Taxpayers and Advisers Meet

NHS Pension

logistic
Posts: 6
Joined: Thu Jul 09, 2015 5:07 pm

NHS Pension

Postby logistic » Sat Oct 12, 2019 2:34 pm

I have an NHS pension and a SIPP. I have exceeded the current lifetime pension allowance and my NHS pension will be reduced as a result of the lifetime allowance tax charge.

My financial advisor has told me that if I crystallise my SIPP before drawing my NHS pension, the value of the SIPP will not be included in the testing of my lifetime allowance on my NHS pension thereby reducing the lifetime allowance tax charge on my NHS pension.

Is this correct

ben_power
Posts: 13
Joined: Tue Feb 27, 2018 8:34 pm

Re: NHS Pension

Postby ben_power » Fri Mar 27, 2020 12:39 am

Your financial adviser is 100% incorrect.

If you crystallise your SIPP it will be measured against your LTA and will subsequently utilise a % of the LTA. When you subsequently take the NHS pension it will also be measured against your remaining LTA. Please find a better adviser.

The NHS have connections with professional financial advisers who not only know the NHS pension inside out but can advise on the bigger picture. I know this because I work for them. I won't name the company as I don't want to be promoting a service but you should seek professional advice/guidance.


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