The standard pension calculator - NHS Pension Scheme (Amended 1 April 2008)
What is a standard pension?
When you retire from the NHS Pension Scheme (Amended 1 April 2008) you will get a pension and tax free lump sum. Your annual pension will be 1/80 of the best of your last 3 years pensionable pay for each year of Scheme membership. Part years of membership will also count towards your pension. This will usually be paid for the rest of your life. Your lump sum will normally be 3 times your yearly pension, but married men with membership before 25.3.72 may get a smaller lump sum.
There are some limits on the amount of membership that can count for benefits.
- not more than 40 years at age 60 if those years were worked before 1 April 2008
- not more than 40 years at age 55 for special classes*
- not more than 45 years altogether
- you cannot be a member if you had attained age 70 by 31 March 2008 or age 75 since that date** (65 for special classes)
*Special classes are Scheme members in certain employments who joined the Scheme before 6.3.95.
Pensions taken before your normal retirement age - actuarially reduced pensions
If you take you pension before your normal retirement age (60 years old for most members of the NHS Pension Scheme, 55 years old for special classes), your pension and lump sum are reduced to take account of the fact they are being paid earlier than normal. This reduction is called an 'actuarial reduction' and is set by the Secretary of State on the advice of the Scheme Actuary.
This calculator asks you for the age at which you want your pension calculated and whether you are a member of the special classes. Using this information the calculator can work out how much your reduced pension and lump sum would be if they were taken before your normal retirement age.
If you have entered an age under your normal retirement age the calculator displays both the benefits you would get at your normal pension age and also those that you would get an the younger age, to show what effect taking the pension early will have. If you have entered your normal retirement age, the acturially reduced benefits are left blank.
Use of the calculator
The may only use this calculator if you have contributed to the NHS Pension Scheme (Amended 1 April 2008) on or after 1 April 2008. This calculator will estimate the standard pension and lump sum you will normally receive at retirement. The calculator will also estimate the reduced pension and lump sum you would receive if you decide to retire before reaching your normal retirement age (and after 1 April 2008).
Once you have worked out your pension and lump sum amounts using this calculator, you can use those amounts to feed into the pension commutation calculator and model your options for taking a larger lump sum. Use the link to get to the additional lump sum calculator.
This calculator is not applicable to members of the New NHS Pension Scheme.