Is it easier to claim my NHS pension while I am still working or after I retire?

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. There is nothing in legislation stopping you from taking your pension benefits whilst you are still employed. But how it will work in practice will depend on the pension scheme. The situation is even more complicated, as in the NHS scheme there are different sections depending on when you joined. These sections all have different rules. The NHS offers several different options to people who want to combine working with taking benefits. You may be able to retire and take your full pension and then return to work after a short break, re-joining the NHS pension scheme to keep building up your future pension benefits. Or you might be able to take partial retirement and claim all or part of your pension whilst continuing to work, but without having to take a break and leave your job. However, not everyone will qualify for both options, as the rules vary between the different NHS pension scheme sections, so it’s worth contacting the scheme to see what options are available to you. As long as you have completed two years as a member of the scheme, if you choose to leave work before taking your benefits then you will become a “deferred member”. You will be able to keep your benefits, and they will increase each year in value until you decide to access them. Again, you can leave it until your normal pension age, or you could apply for early payment with a reduction. Finally, defined benefit pension schemes are only one type of pension. If you also have a defined contribution pension – such as a personal pension, a self-invested personal pension (SIPP), or some workplace pensions – you generally have much more flexibility. These pensions build up a pot of money from your own contributions, your employer’s contributions and investment growth. You can usually start taking money from them from age 55 (rising to age 57 from April 2028), whether you’re still working or not. Before taking money from any pension, it’s always a good idea to check the rules with your pension provider or employer. The timing of taking benefits could affect the amount you receive and your future retirement plans.