Financial advice for newly qualified doctors
Gallagher & Tarran advisers fully understand just how demanding life as a newly qualified junior doctor can be and how busy your working life will be in your Foundation Training jobs – there is little time left for financial planning. As a newly qualified doctor your finances need not be complicated but you may find that a little guidance and advice at this stage may be very useful.
We have many years of experience working with junior doctors and understand the intricacies of your finances and are able to cast our expert eye over them, ensuring whatever your plans for the future, your money is working for you. Our experienced and professional planners can help you keep your finances on track. We are not salesmen who represent insurance companies promoting their products; we are specialist independent advisers who will source the right financial solution for you.
You will most probably have finished University having accrued student loans and an overdraft and will perhaps be concerned about repaying these and how they would impact upon your finances and ability to borrow money maybe to buy your first home. We can help allay any fears that you may have and will help you plan your everyday finances as well as provide you with mortgage advice when you need it. Remember that you will not start to repay your student loans until the April following your appointment; be prepared for that!
Having an income
Suddenly after many years living as a student, you have a regular income! Great, go out and buy a few things but don’t go mad or commit to things you cannot afford. In our experience most newly qualified doctors do not even know what they are supposed to be earning or what the banding payments are for. We will take the time to explain the fundamentals of your NHS benefits including how you are taxed, how the NHS pension scheme works and what would happen if you were sick and unable to work. This is vitally important as you are at the most vulnerable stage of your career (see the section on income protection)
Financial Planning for life (+) Click to open
Financial Planning is not a "one off exercise", but a process that evolves over time.
Managing your finances properly is very important. There is no complicated formula, nor is it rocket science, it is simply the case of taking quality specialist Independent Financial Advice from an early age and planning your finances in a logical, methodical way.
There are areas of financial planning that are relevant to us all, such as a decent current account, a good mortgage and tax efficient saving; then there are other areas that are particularly relevant to our chosen career, such as pension provision, sickness and other benefits offered by our employer. By addressing the basics first, we can build upon solid foundations.
Ensuring our income is adequately protected is imperative, because without income we cannot pay the bills and maintain our standard of living. To take away the financial worry that a serious illness would cause is vital, and to provide security for our dependents in the event of our death is important.
Once these basics have been addressed, we would then have peace of mind in knowing that whatever happens we are protected against financial loss and will receive some compensation in the form of either an income or a cash lump sum. Everything we then do with our money is about making good use of any surplus income that we have, allocating it to areas that will enable us to reach our goals, such as saving for the short term, early retirement, paying off a mortgage or other loans, saving for our children’s further education, or investing for the long term.
If you feel that you might benefit from a no obligation initial chat about your financial planning or would like a presentation to a group in the hospital please complete the contact details section.
What we do for our clients
Arrange an initial meeting (at our expense) with you to discuss your aims and to introduce our holistic financial planning service;
Gather relevant personal and financial data to assist in setting out your goals and aspirations;
Prepare a professional bespoke financial plan based on your own unique circumstances;
Present our solution to you;
Implement any agreed actions;
Agree a review process to meet your specific requirements.
If you feel that you might benefit from a no obligation initial consultation about your financial planning or would like a presentation to a group of your peers please complete the contact details section.
We look forward to being of service to you throughout your career.
NHS Provided benefits (+) Click to open
What are your NHS protection benefits?
As a NHS doctor and a member of the NHS Pension Scheme you are entitled to a number of valuable additional benefits such as sick pay, life insurance and an ill health retirement pension.
It is important to note that the sick pay and ill health pension are dependent on your superannuated salary and the number of year’s service that you have accumulated and therefore the benefit is extremely limited in the early years of your career. (To enhance your existing benefits contact us or see our section on doctors income protection.)
When you first start work as a doctor in the UK, you join the NHS sick pay scheme. You hope that you will be well protected should you become ill, in reality, within the first 5 years of work, the benefits are very, very poor and you are extremely vulnerable to financial hardship should you be ill for any length of time.
As you can see from the table below, the NHS sick pay provision allows for you to receive full pay for varying periods of sickness dependent on service. At the end of this time, all payments will cease. It is important therefore, that any income replacement contract fits in with your existing provision. The maximum NHS benefit will pay for 12 months of sick leave, 6 months of which will only be at half pay.
|Service||Full Pay||Half Pay|
|0-4 Months||1 Month|
|Next 8 months||1 Month||2 Months|
|1 Year||2 Months||2 Months|
|2 Years||4 Months||4 Months|
|3 - 5 Years||5 Months||5 Months|
|5 Years +||6 Months||6 Months|
N.B. If you have a break in NHS service that is longer than 12 months then you will have your sick pay eligibility reset.
NHS Life Cover
As an active member of the NHS Pension Scheme life cover is provided at the rate of two times your basic salary as a hospital doctor (officer class) or two times your average dynamised earnings if a GP (practitioner).
Foundation Doctors and Specialist Trainees
Your salary is split into two elements, your basic salary and your on call allowance (banding payment). Your NHS Pension Scheme life insurance is calculated at the rate of twice your basic salary only.
Source: NHSBA Scheme Guide V12 - 04/2014