Estimate your NHS CARE pension, member contributions, lump sum options and retirement income for 2026.
| Band | Pensionable Pay Range | Employee Rate | Monthly Cost (£35k) |
|---|---|---|---|
| Band 2 | Up to £13,259 | 5.1% | £148.75 |
| Band 3 | £13,260–£26,831 | 5.7% | £166.25 |
| Band 4 | £26,832–£32,691 | 6.1% | £177.92 |
| Band 5 | £32,692–£49,077 | 7.7% | £224.58 |
| Band 6 | £49,078–£72,597 | 8.8% | £256.67 |
| Band 7 | £72,598–£113,198 | 9.8% | £285.83 |
| Band 8a | £113,199–£152,245 | 10.0% | £291.67 |
| Band 8b–9 | £152,246+ | 12.5% | £364.58 |
Employer contribution rate is 20.6% for 2025/26. Total pension cost = your rate + 20.6%.
The NHS 2015 pension scheme is a Career Average Revalued Earnings (CARE) defined benefit pension. Unlike the old final salary schemes, your pension is built up year by year based on your actual pay each year rather than your salary at retirement. This makes it more transparent and fair, especially for NHS staff who may work part time at various points in their career.
Every year you work in the NHS, you earn 1/54th of your pensionable pay as pension. That slice is then increased each year by the Consumer Price Index (CPI) plus 1.5% to protect it against inflation. When you reach Normal Pension Age (currently 67, linked to State Pension Age), all those annual slices are added together to give your total annual pension.
Suppose you earn £36,000 in 2025/26. In that year you accrue £36,000 ÷ 54 = £666.67 of pension. If CPI runs at 3% the following year, that slice is revalued by 4.5% (3% + 1.5%), becoming £696.67. The next year's slice is then added on top, and so on throughout your career. After 30 years of contributions, the accumulated slices form your total annual pension at retirement.
Many NHS workers will have legacy benefits under the old 1995 or 2008 final salary schemes. Following the landmark McCloud court judgment, the NHS Business Services Authority applied a remedy: all eligible members were assessed as if they had stayed in their legacy scheme from 1 April 2015 to 31 March 2022. From 1 April 2022, everyone moved into the 2015 CARE scheme. The remedy period (2015–2022) was recalculated and members received the better of legacy or 2015 scheme benefits for that window.
The NPA for the 2015 scheme is tied to State Pension Age, currently 67 for those born after 1960. You may take your pension early from age 55 (rising to 57 from 2028), but your pension will be permanently reduced by approximately 5% for each year you take it before NPA. This reduction is applied as an actuarial factor and is permanent — it is not restored when you reach NPA.
For example, retiring 5 years early results in a reduction of approximately 22% (compound reduction, not simple 5% × 5). Always use the NHS BSRA retirement modeller for precise factors as tables change periodically.
The 2015 scheme does not automatically provide a lump sum. However, you can choose to commute part of your annual pension into a tax-free lump sum. The commutation rate is £12 of lump sum for every £1 of annual pension surrendered. You may commute up to 25% of the capital value of your pension (capital value = annual pension × 20). The maximum tax-free lump sum is also capped at 25% of the Lifetime Allowance equivalent figure or £268,275 (the pre-LTA-abolition protected lump sum figure) for 2025/26.
The Annual Allowance is £60,000 for 2025/26. For defined benefit schemes like the NHS pension, the "pension input amount" is calculated as the increase in capital value of your pension during the year (multiplied by 16 for active members). If your pension growth plus any other pension contributions exceeds £60,000 in a tax year, you face an Annual Allowance charge.
The Lifetime Allowance (LTA) was abolished from April 2024. There is now no cap on the total pension pot size, though the 25% tax-free lump sum is capped at £268,275 for most members (protected amounts may be higher).
If you die while still working for the NHS, a death grant of 2 times your annual pensionable pay is paid tax-free to your nominated beneficiary. Your spouse, civil partner or nominated cohabiting partner may also receive an ongoing dependant's pension of approximately half your earned pension entitlement. Children under 23 in full-time education also qualify for a children's pension.
NHS members can purchase Additional Pension (AP) to top up their 2015 scheme pension in £250 annual increments up to a maximum of £8,000/year of extra pension. You can pay by lump sum or by spreading regular deductions over a period. AP is particularly useful for those who worked part-time or had career breaks.
The 2015 CARE scheme is well suited to part-time NHS staff. Pension accrues on your actual pensionable pay, not the full-time equivalent. So a Band 6 nurse working 0.6 WTE at £28,740 actual pay accrues £28,740 ÷ 54 = £532 pension per year — still building meaningful retirement income throughout a part-time career.