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.

These are:

• 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.

Instructions	Your answers
1. Enter the age at which you intend to retire. If this is earlier than your normal pension age (60 for most members, or 55 for special class members) your pension and lump sum will be reduced before being paid. Both the unreduced and reduced benefits are shown below	Years
	Complete months
2. Do you have special class status (with a normal retirement age of 55)?	No Yes
3. Enter your current salary (excluding any amounts you do not pay pension contributions on). Please enter only numeric values (no commas), using decimal points where needed. Non-numeric values will cause errors.	£
4. Enter the total number of whole years Scheme membership Do not include any added years you are purchasing as this calculator does not take account of them	Years

Results

Retirement at selected age before reduction is applied
Annual Pension
Lump Sum Retirement Allowance
Retirement at selected age with reduction applied
Actuarially reduced pension
Actuarially reduced lump sum

Important notes:

• The results assume that you would receive a normal lump sum based on three times pension before any reduction due to early retirement.
• Benefits are only permitted to be taken before your normal retirement age if the pension is sufficient to pay any Guaranteed Minimum Pension
• Any additional pension you may be purchasing through additional voluntary contributions is not taken in account by this calculator
• If you joined the NHS Pension Scheme on or after 1 April 2006 either for the first time or having not been in the NHS Pension Scheme since 31 March 2000 then from 6 April 2010 the earliest age at which you can choose to retire voluntarily is 55 years.
• This calculator is only valid for calculating pensions for members who have paid pension contributions in respect of full time NHS employment and are not general medical, dental or ophthalmic practitioners.
• If you intend to retire soon and you want an accurate pension forecast you should contact your local pensions officer