How this LGPS pension calculator works
The Local Government Pension Scheme (LGPS) is a defined benefit pension. In simple terms, your pension is not directly based on investment returns. Instead, each year you build up a slice of pension based on your pensionable pay, and those slices are then revalued over time.
This calculator gives a practical estimate of your future LGPS annual pension using a straightforward model:
- Annual accrual is assumed at 1/49 of pensionable pay (CARE section).
- Your existing accrued pension is projected forward with CPI-style revaluation.
- Future accrual is added for each year until your chosen retirement age.
- If you retire before or after NPA, an early/late adjustment factor is applied.
- An optional tax-free cash estimate is included using a commutation factor of 12:1.
Understanding the key inputs
Current accrued pension
Enter the annual pension already shown on your latest LGPS statement. This gives the model a solid starting point and is usually more accurate than trying to reverse-engineer old service and pay history.
Pensionable pay and pay growth
Future CARE accrual is based on your pensionable pay each year. If your pay is expected to rise, your later accrual years can be larger. Use a conservative assumption (for example 1% to 3%) unless you have a clear career progression forecast.
CPI / revaluation rate
LGPS CARE benefits are revalued in line with scheme rules linked to inflation. This calculator uses one annual percentage assumption to project both current and future accrual values to retirement.
Retirement age vs normal pension age
If you draw benefits before your NPA, pensions are generally reduced for early payment. If you retire later, pensions may be increased. The calculator includes editable annual early/late factors so you can test scenarios.
What the results mean
After you calculate, you’ll see:
- Projected pension at retirement (before tax-free cash): your estimated annual pension once age adjustment is applied.
- Monthly pension: annual pension divided by 12.
- Maximum estimated tax-free cash: a practical cap used for this model.
- Pension after cash commutation: reduced annual pension if you choose to take cash.
- Approximate capital value: shown for comparison only.
Ways to improve your expected LGPS income
- Increase pensionable pay where possible (promotion, contracted hours, allowances included in pensionable earnings).
- Delay retirement if affordable, reducing early-retirement penalties.
- Review whether additional pension or AVCs are appropriate for your plan.
- Check annual benefit statements and keep service records accurate.
- Model several inflation and pay-growth scenarios to stress-test your plan.
Frequently asked questions
Is this calculator exact?
No. It is designed for planning and comparison. Official LGPS calculations can include protections, transfer credits, part-time history, rule-specific factors, and admin assumptions that are not captured here.
Does it include state pension?
No. This tool estimates LGPS benefits only. You should model your state pension separately and combine both figures for total retirement income planning.
Can I rely on one single projection?
It is better to run multiple scenarios. Try a cautious case (low pay growth, lower CPI, earlier retirement) and an optimistic case. Planning between those ranges is usually more realistic than trusting one exact number.
Final note
If you are close to retirement, considering flexible retirement, or thinking about taking tax-free cash, request figures directly from your LGPS administering authority and consider regulated financial advice for personal decisions.