I'm fortunate enough to be in the NHS pension scheme (one of the few perks of working for the NHS!) and because I am one of the special classes I can retire on full pension age 55 (which is nice!)
I can work out the pension and the lump sum easily enough but what I can't figure out is just what deductions there will be from the pension on a monthly basis?
Okay, I will have to pay tax, that's simple enough to figure out
I will no longer have superannuation payments going off...fine
But what about National Insurance payments? I will be 55 and have an income from thepension of about 15.5K per year (it's index linked) do I have to pay NI contributions still?
No, you will not have to pay NI on your pension. You will continue to be liable for NI on any earnings from employemnt (for example, if you took a part-time job) until you are 65. The current threshold is �91 a week. It might be worth asking for a prediction of your state retirement pension at age 65, as it may be a good idea to pay voluntary contributions to maintain a decent pension. Try http://www.thepensionservice.gov.uk/atoz/atozdetailed/rpfore cast.asp