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NHS dentists to receive pay rise: Time to review income protection?

This month, NHS dentists in England will start to see a pay increase, following the government’s acceptance of the Independent Review Body on Doctors’ and Dentists’ Remuneration’s (DDRB) recommendations. This pay adjustment, which covers contracted dentists, associates and employed dentists, will be backdated to April, marking a substantial financial uplift across the board.

What does the pay increase mean?

Hospital dental trainees: Trainees will see 6% plus a consolidated uplift of £1,000 to the pay points. For specialist and associate specialist (SAS) on the 2021 contract, the uplift will be 6% on top of the increase for 2024-25 already agreed as part of the multi-year deal.

Consultants: For hospital consultants and all others in employed NHS roles, such as in the CDS, academia, those on the pre-2021 SAS contract, the uplift will be 6%.

This is undoubtedly good news for many dentists across the UK, but with increased earnings comes the need to reconsider financial protection. How many dentists have thought about reviewing their income protection policies to reflect this pay rise?

The importance of income protection for dentists

Income protection is a crucial financial tool designed to replace your income if you cannot work due to injury or illness. With families often reliant on this income, ensuring adequate protection should be a top financial priority for any dentist.

Key considerations:

  • Increased earnings: With a higher salary, existing income protection policies might not provide adequate coverage for your current income level. It’s essential to review and adjust these policies to ensure they align with your new financial situation.
  • Tailored policies for dentists: Due to the unique financial needs of dentists, it’s vital to have income protection policies tailored specifically for dental professionals. These policies should provide sufficient coverage during periods of illness or injury, especially considering the NHS’s sick pay scheme.
  • Dovetailing with NHS Sick Pay: The NHS provides an element of sick pay. An income protection policy can complement this by kicking in when your NHS pay and any private income reduces or stops, ensuring continuous financial support.
  • Protecting your family’s future: Income protection ensures that your mortgage, bills, and other living expenses are covered if you’re unable to work. This safeguard provides financial security and peace of mind for your family.

Steps to take now

Given the recent changes, it’s crucial to take proactive steps to protect your financial future:

  • Consult a financial adviser: Independent financial advice is essential, as income protection policies vary significantly. A financial adviser with experience working with dentists can help you find a policy that fits your specific needs.
  • Regularly review your policies: As your income and financial commitments evolve, regularly reviewing your protection policies ensures they continue to meet your needs and provide adequate coverage.

While the recent pay rise for NHS dentists is undoubtedly a welcome development, it also brings to light the importance of reassessing financial protection. Taking the time to review and adjust your income protection can provide peace of mind, knowing that your financial future is secure, even in unforeseen circumstances.

The information contained within this article is for guidance only and does not constitute financial advice.

Content correct at time of writing.

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