Richard Hull

IMPORTANT: Many of you will soon be opening brown envelopes and seeing some pretty large numbers for 24/25, which can be scary. Others will be modelling them if you haven’t received a statement yet because the scheme failed to send it within the legal timeframe (you can model growth for free here: bit.ly/GPFTinterest). But it’s important to remember a few things. You have a charge because your pension has increased significantly. I know it feels unfair—as it’s correcting years of prior erosion—but that’s one of the many problems with the Annual Allowance. Please don’t lose sleep over the Annual Allowance. It might not be as bad as you think (so model it, and remember carry forward, for many there will be significant carry forward in 23/24 especially for hospital doctors due to #negativePIAs which many people have been lobbying for many years!). Some people will have the ability and choose to pay; others may opt for Scheme Pays, through choice or necessity. I previewed my Scheme Pays analysis a few months ago in a YouTube, and hopefully it will be available shortly as an add-on to my free or premium modellers (sneak preview below). Scheme Pays has a lot of moving parts—because the interest depends not only on rates but also on when you plan to retire from each scheme. There isn’t a single “Scheme Pays impact”; it’s dynamic and varies based on several factors including several things that may change including when you want to retire, and also your health. None of 👇 is advice, its just to help you understand your numbers. Some people way wish to get formal financial advice i.e. from an IFA around this decision. Also remember to consider whether you can do anything THIS tax year we are in which may also see big growth numbers for many—can you avoid tapering, or should you ignore it and carry on? Scheme Pays may not be as bad as feared (and has improved versus a few years ago for technical reasons), so you need to #KnowYourNumbers and #ModelYourPension to make an #informedchoice. Last but not least, remember that despite its many problems—including catastrophically poor administration and the Annual Allowance being poorly suited to schemes like the NHS—it’s still a good scheme. Leaving the scheme is almost never the right decision. Here’s a sneak peek of what’s hopefully coming soon as an #AddOn 👇, so model your numbers today and sleep better knowing your position. Remember there is no downloadable model this year - the only way you can get it is by registering at bit.ly/GPFTinterest ! Please share/RT with people who are struggling.