Mortgaging our pensions to pay our contributions


The NHS “scheme pays” facility allows members, faced with a tax liability arising from breaching the annual allowance, to meet the payment from future pension benefits. This amounts to taking our a mortgage on the pension. For many senior members of the schemes, especially consultants and senior GPs this is becoming an annual event with the charges on future pension severely damaging retirement prospects. The problems start when a significant pensionable pay rise triggers the scheme to notify HMRC of a chargeable event. Normally the deemed benefit from the consequent increase in pension rights would not exceed the annual allowance…

To access this content you need to be logged in with the relevant membership.


About Author

11 years providing financial advice to individuals directly and through employers. 14 years within insurers working with advisers to provide better DC and DB outcomes. 25 years left to make a difference!

Leave A Reply