There have been many amendments in recent years to the NHS pension platform. As well as contribution levels increasing, we have also witnessed an increase in the retirement age and a reduction in benefits by up to a third, due to a switch in the indexation measurement.
To add to the concern, as of April 2015 NHS pension holders will see their retirement funds locked into the UK for good. The accepted proposal will mean that no pension transfers will be permitted for anyone with an un-funded public sector pension scheme, this leaves every NHS employee stranded in a deficit-ridden pension fund, where benefits will continue to decrease and retirement age will continue to be extended.
Austerity measures to try to claw back the deficit of the public sector pension pot will impact everyone who has saved for years in order to allow themselves a comfortable retirement.
Previously, the NHS pension fund was viewed as one of the most secure in the public sector, however now there are justifiable and very real concerns that the level of deficit will result in a continued reduction in the amount previously promised to each individual upon retirement.
For those currently living and planning to retire overseas, QROPS can provide the solution. Thousands of NHS pensions have already been moved into a more beneficial and stable scheme in light of the current situation in the UK, and this trend is set to continue, but this option is only available until April 2015.