Nige wrote:

Can anyone advise us on this? Is it worth buying back missing years or
could the £250 a month be better invested elsewhere? Neither of us are
particularly clued up when it comes to pensions, so any impartial
advice would be gratefully received...

Not without knowing her age, salary, planned retirement age, proportion
of salary paid per year of contribution, acceptable level of investment
risk, and the number of years for which she will pay the extra £3,000 a
year.

I'm not clear whether the £250 is per month of equivalent service, in
which case the duration of the payment doesn't matter, or out of each
month's salary.

£3,000 at retirement, at 60, will buy something of the order of £100 per
year in pension. Assuming a 60th final salary scheme, she is close to
retirement age, and that you mean £250 per equivalent year of service, I
would suggest that if her salary is significantly more than £10,000
(allows for the very rough figures) a year, it would be good to take the
NHS offer. If it is not, it might be worth looking at actual annuity
rates.

Please verify all facts as this is no more valid financial advice than
you have received from your friends, who will know more of the facts.


PS Is the NHS pension still fully index linked? I think most private
annuity have a cap on the inflation rate that will be supported.