‘I enjoy the freedom and picking funds’: why this doctor ditched his 250,000 NHS pension – Telegraph.co.uk

Gold-plated final salary pension schemes are known to be the most generous out there, but that is not to say they suit everyone.

Raj Muvva, 39, a GP in Scotland, said he had transferred his money out of his NHS pension into a self-invested personal pension two years ago and had been very happy with his decision.

Mr Muvva said he had made the decision to quit the scheme when he realised that he would not have access to his full pension until he was 67. He was also concerned he would never see all his money again.

He said: I dont expect to live past the age of 85, so I do not plan to spend all of my pension. By then, my children will be grown up and I can leave something to them, but I would not be able to do that in a defined benefit scheme.

NHS doctors up and down the country have been grappling with punitive pension rules for higher earners and incomplete pension records.

Most savers can put up to 40,000 into pensions each year while getting tax relief. But higher earners see this annual allowance gradually reduced to a minimum of 10,000 a year under the so-called taper.

Faced with paying hefty tax charges, some doctors have already been forced to reduce their working hours, pull out of the pension scheme or even retire early.

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'I enjoy the freedom and picking funds': why this doctor ditched his 250,000 NHS pension - Telegraph.co.uk

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