ABSTRACT
Practitioners only save through the tax relief because they still pay the self-employed rate of national insurance contributions. Tax relief is only available on up to 9% of salary in the financial year in which the purchase is made. Most people are likely to feel that 6% of income is a reasonable price to pay for financial security in retirement, particularly in an era when people are retiring earlier and living longer. For most people working in the NHS, the NHS pension scheme provides the foundation for financial planning for retirement. Payments by deduction from salary must continue until the chosen retirement age, unless this causes genuine financial hardship. The single payment method can be used within 12 months of joining the scheme, and by newly married men within 12 months of their marriage. There are two ways of buying an unreduced lump sum: by a single payment or by regular deductions from pay.
