Posts Tagged ‘Retirement’

Surge in consultants opting for early retirement

By Mike Broad - 20th November 2011 8:42 pm

Consultants are opting to retire early rather than face pension compromise, figures reveal.

The number of consultants taking voluntary early retirement jumped from 98 doctors in 2010 to 169 in 2011.

The HCSA believes this rate reflects growing feeling of being undervalued.

Stephen Campion, chief executive of the HCSA, said: “Far from being anecdotal, I am aware of a number of consultants who have decided to retire prematurely and cite the pension uncertainty with good reason.

“The threat to pension benefits together with a feeling of being undervalued have without doubt influenced consultants to leave the NHS earlier than they had planned.”

The figures, from the NHS Business Services Authority Pensions Division, and revealed by BMJ Careers, show that over the past five years the proportion of consultants taking early retirement has almost doubled from 7.3% in 2006 to 14.0% in 2011.

In addition to the threats to the NHS pension, a BMA spokesman suggested that longer, more intense hours of work - partly due to the drop in junior doctors’ availability following new working time restrictions - were also having an affect.

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Let us not forget that we’re a powerful bunch

By Tom Goodfellow - 3rd July 2011 7:21 pm

On Thursday 30th, with thousands of public sector workers on strike, the whole country was talking about pensions. Meanwhile feral school kids roamed the streets in gangs, while their teachers waved anti-government placards at various rallies round the country. Immigration officials abandoned their posts and queues at airports snaked back to the planes. Town halls and government departments ground to a halt, the dead remained unburied, a plague of locusts invaded the West Country and the Thames turned to blood.

Or, if you are a government spokesperson, a few people went on strike with minimal or no effect on society, other than hoards of angry Mums were forced to take a day off work to look after their kids and lust over Andy and Raph.

The politicians are giving endless interviews telling us that because we doctors are doing so well in keeping Joe Public alive (a good thing apparently), the pension pots are running dry and in years to come we will all be confined to the Work House or, even worse, end up like Greece. Like many of you I find many of the arguments tendentious to say the least! The NHS pension pot is doing so well it is actually a recent net contributor to the exchequer of about £2bn! I listened on the radio to Francis Maud MP squirm under relentless questioning, and it seems that the rhetoric has now morphed from pensions are “unaffordable” to “unfair”.

Public sector workers were awarded gold-plated pensions because in general we were paid less than the private sector. Now the pendulum has swung the other way, and it has all become “unfair”. It is likely that some re-balancing is necessary, and the various arguments are being well presented by many, including my own union the HCSA.

It therefore seems profoundly ironic in a Kafkaesque sort of way that I spent that day of all days aimlessly wandering the streets of my local town, clutching an umbrella, and wondering what to do with the rest of my life. Yes, on June 30th, as the world went on strike over pensions I became an OAP!

I often tell the story of my Great Great Aunt Isobel who was a Scottish spinster born in 1854. She ran a dressmaking business in Dumfries. In our family album there is a photograph of her, draped in fox furs, sitting regally in the back seat of an open car like Queen Victoria. I can just remember visiting her as a child. In her fifties she became unwell and her doctors advised her to retire for the sake of her heart (I know the feeling). She subsequently lived until she was 102, obviously the best medical advice she ever received. So, I have decided to follow her example and Wednesday was my last official working day; full-time at least.

I have already ordered a Zimmer frame from Amazon. I hope to collect my hearing-aid sometime next week, but I couldn’t hear what the nice lady from the clinic was saying to me on the phone. I have purchased a pair of pebble glasses to help me see, but I can’t remember where I have left them. I have also laid in a large supply of Werther’s Originals to suck noisily and annoy people whose names I can’t remember. Mind you with regard to Shakespeare’s seven ages, I think I still have at least two to go. I am not yet a slipper’d pantaloon and although I am sans a few teeth I am not sans everything.

Now I can already hear the siren voices intimating that I have simply grabbed the money and run, abandoning the rest of the profession before the pension brown stuff hits the fan. And to be honest you would be right, I admit it. But I am not sure what alternative I had, (”You’ve said it,” mutters the wife). However, I feel that I have done my part in fighting for the profession.

I was recently reminded by a colleague that in 1975 we took on the Government in the form of the then Secretary of State, Mrs Barbara Castle. She decided to abolish the overtime payments to junior doctors (known as Units of Medical Time, UMTs). We juniors rose up and instituted a work to rule of 40 hours a week. The whole NHS ground to a halt and she caved in after three weeks telling us that it had all been a ghastly mistake. Rumour has it we made her cry!

I hope that current matters do not result in such a confrontation, although it would be interesting to watch Andrew Lansley sobbing into his hankie. But remember we are a powerful bunch!

After a short break, I plan to return to work on a part-time basis. I couldn’t bear to give up completely; what would I have to blog about?

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I’m planning my retirement party already

By Caroline Whymark - 23rd June 2011 10:23 pm

Recently I have begun to think about my retirement party. Not because I’m nearing my late fifties but because I’ve organised and attended several recently and can’t help but wonder what it’ll be like when it’s my turn.

You see it’s another phase in life. Phases I’ve identified so far include eighteenth and twenty first birthdays, engagement parties, hen parties, weddings, christenings, fortieths, divorce parties and funerals.

Chronologically, retirement was a phase I hadn’t really given much thought to until now. Like death and taxes, retirement will come to us all (admittedly to some much sooner than others). It now presents another large stressful organisation of excess: venues, presents, speeches, what to wear dilemmas, alcohol and undoubtedly regrets. And of course cost.

In years now gone, if you worked until you were 60 in the NHS you received a farewell ‘tea’ free gratis. It was seen as a thank you for your service and having stuck the distance. It rose above usual canteen fare. Sandwiches were garnished with salad and often strawberry tarts put in an appearance. These delights formed the basis of the resulting banquet due mainly to the efforts of nursing staff, each bringing in something homemade and calorific to send you on your way. But no more. Not only is there no free lunch at retirement, your guests are now expected to pay to attend and bank roll a proper celebratory bash.

Then unintentionally, it turns from a celebration into a popularity contest and public measure of your career success (or otherwise). How big a venue do you need? How many nurses want to come? How many mid wives? How many can afford to? Do the trainees like you enough to bother attending now that your job will be replaced with one nowhere near as attractive? Can you attract people from your past as well as your present? The attendance of your spouse, your children with perhaps partners and offspring of their own is yet another marker of your success or otherwise.

The party itself is like a strange juxtaposition of various other celebrated life events. Like a wedding a standard format has evolved: gifts, speeches, polite chit chat deteriorating into drunken declarations of everlasting love, not forgetting disinhibition on the dance floor. Like a funeral, no one is specifically invited or excluded and inevitably you glance around wondering who’ll be next. Throw in the gleeful delight of impending release from a life sentence in the NHS and you’d be forgiven for thinking you’re at a divorce party.

I had always planned to have a massive party at my funeral. People enjoying themselves, wearing bright clothes and remembering me fondly. But why miss the party? I am now a big fan of this ‘retirement do’ lark and have decided to bring the party forward a few years to mark my retirement instead of my passing (assuming nature and fate allow that sequence of events). I’m going to plan it, organise it and pay for it myself. I’ll have a theme, flowers, a gift list and will bequeath all items from my office to those most deserving. I’ll even cry if I want to. I can hardly wait!

Who knows how many more years it’ll be until my big day arrives, but when it does, you can rest assured you’re all invited

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“Limit hospital doctor pay rise to 1% or less”

By Mike Broad - 6th October 2009 10:42 am

Hospital doctors face the prospect of a real-terms pay cut next year.

The chancellor Alistair Darling is to write to the pay review body urging it to recommend a pay rise of between 0% and 1% for 2010/11, which is likely to be below inflation.

It’s even worse for GPs. They are part of 750,000 public sector high earners, including senior NHS managers, council chiefs and judges, who are likely to receive a pay freeze if the chancellor’s recommendations are followed.  

If fully implemented, the pay freeze would be the toughest public sector pay deal in 30 years.

Dr Hamish Meldrum, BMA chairman, commented: “Penalising all doctors, and in particular singling out GPs for a total pay freeze, is completely the wrong move and is likely to prove counterproductive.

“Rather than punishing the front-line staff who are achieving better clinical outcomes than ever before, the government needs to fundamentally re-think its health policies to ensure taxpayers’ money is not wasted. Hundreds of millions of pounds of NHS funding has been lost on poor value Private Finance Initiatives, expensive ISTC contracts and unnecessary advice from management consultants, together with the market-driven reforms that allow commercial providers to profit from the NHS.”

The pay freeze would not affect teachers, nurses and police officers, who are still subject to three-year pay deals which come to an end next year, or members of the armed forces. Other public servants likely to receive between a 0% and 1% pay rise include dentists and prison officers.

The BMA called for a 2% salary increase for all doctors in its evidence to the Review Body on Doctors’ and Dentists’ Remuneration. It urged the pay body to remain independent of government presssure and take doctors’ morale into consideration when deciding next year’s pay award. 

Hospital doctors received a pay award of 1.5% for 2009/10.

The chancellor controversially made his announcement during the Conservative Party Conference.

George Osborne, shadow chancellor, announced that a Conservative government would impose a one-year pay freeze for the 4 million public servants earning more than £18,000 in 2011 as he vowed to tackle the country’s debt crisis. He also said the Conservatives would seek to raise the state retirement age from 2016 to 66 years of age.

Stephen Campion, chief executive of the HCSA, said: “There’s no doubt that pensions are a major factor of public expenditure and in economic terms the status quo is not a realistic option.

“But I’m concerned that public servants, including doctors who are currently subject to various pension schemes, should not suffer a ‘double whammy’ by unilateral changes to their existing pension plans - that would penalise those who have planned for financial stability in retirement. These are worrying times for those preparing for retirement and we would not expect them to carry the burden of a reduction in anticipated pension income.”

Read more on current consultant pay scales.

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Eight tips on planning a comfortable retirement

By Simon Dickerson - 20th August 2009 2:36 pm

The NHS pension scheme continues to be one of the best pension schemes available, providing a pension and a lump sum at retirement, along with spouses and dependents benefits. The scheme is heavily subsidised by the NHS which contributes 14% of pensionable pay into the scheme.

These benefits form the foundation of pension planning; however with many consultants having significant private income it is important to consider other arrangements to supplement the basic pension. Consequently there are important decisions to make when considering how best to boost pension provision.

1. Start early. For every five years of delay in funding a personal pension future premiums should be doubled. Eventual benefits and the cost of these benefits is dependant as much on the amount of time invested as the amount invested.

2. Consider your options. Pension planning can take many forms. Buying additional pension benefits through the NHS, personal or stakeholder pensions, investing in property or utilising other investments. Look at your own personal circumstances to decide what is right for you and take advice.

3. Review regularly. Review your existing provisions at least annually. As income, family circumstances, personal requirements or legislation change it is important to ensure plans in place remain appropriate. Contributions should be increased in line with increased earnings over time. It is easy for income to rise over time and for pension contributions to be left behind.

4. Compare charges and performance. Pension charges have reduced over the years, so keeping abreast of how competitive your pension is with respect to charges and performance is imperative.

5. Diversify. Ensure that you don’t have all your eggs in one basket. Retirement planning doesn’t have to mean pensions. Pensions provide the most tax efficient route to plan towards retirement but are not without restrictions. Investing into ISA’s, may not give the same tax benefits at outset but generally is tax free at retirement and allows access to greater capital sums at retirement than one would normally get from a pension.

6. Tax implications. Consider both you and your spouse’s tax status now and in retirement. Having all income in retirement from one spouse is unlikely to be tax efficient. Try and equalise incomes to ensure that both partners make best use of any tax allowances.

7. Be Realistic. It is often necessary to invest 15% of income or more to enjoy a financially secure retirement. For consultants working privately it costs approximately 20% of taxable private earnings to replicate the benefits that the NHS pension scheme offers.

8. If you can’t retire when you want to, aim to retire later. Normal retirement age for the NHS pension scheme is 60, retiring sooner than this can prove to be very expensive as benefits are reduced. For consultants working beyond 60 there are few reasons not to take pension benefits. Any increased benefits for working beyond 60 are overshadowed by the pension income that could have been received and has been lost.

● Simon Dickerson is a director of Medical & Financial, which provides independent financial consultancy to doctors. Contact him at simon@medicalandfinancial.com, or visit www.medicalandfinancial.com for more information.

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