“Within certain limits, pension savings attract tax relief at the highest rate of tax she pays, so that every £10 saved will cost her £8 if a basic rate taxpayer, or £6 if she pays tax at 40 percent.
“If already a member of the NHS scheme, she may pay additional contributions into the scheme to buy additional benefits.
“This includes buying an additional pension to be paid on top of her NHS scheme pension, which in turn will increase the tax-free lump sum at retirement.
“If a member of the 2015 NHS scheme her retirement age from the scheme is the same as her state retirement age which is 67.
“The NHS scheme offers the option of taking the pension early but with a reduction in the annual pension payable, as it will be paid sooner and for longer. Additional contributions can be paid to cancel out the early retirement reduction and details of these are available on the scheme website.”
The chartered financial planner also discussed private pension scheme options.
“She could also pay into a private pension which simply builds up an additional fund dependant on the investment returns achieved,” Ms Ingram said.
“This is available whether she works in the NHS or elsewhere and all employers must offer an auto enrolment pension to staff who earn more than £10,000 a year.
“Private pension savings can be drawn from age 55 onwards, increasing to age 57 from 2028. Up to 25 percent of the fund may be paid out as a tax- free lump sum, the balance can provide an income, subject to income tax at the rate payable when it is drawn.
“Income can be paid as a guaranteed amount for life or as irregular lump sums for as long as the fund lasts.
“While the fund is growing there is no tax to pay on it and any money left in the pension plan on death can be passed on to others without forming part of her taxable estate for inheritance tax.
