Estimate your NHS 2015 CARE pension
This tool gives a planning estimate for the NHS 2015 Career Average Revalued Earnings (CARE) section. It is not an official statement.
How the NHS 2015 pension scheme works
The NHS 2015 pension scheme is a defined benefit CARE scheme. Instead of building a pension from your final salary, each year you earn a slice of pension based on that year’s pensionable pay. The standard accrual rate is 1/54 of pensionable earnings per year.
That annual slice is then revalued while you remain an active member. For active members, revaluation is commonly modeled as CPI + 1.5% each scheme year (subject to scheme rules and updates). This means earlier career slices can grow significantly by the time you retire.
Key points members often miss
- There is no automatic lump sum in the 2015 section (unlike some older sections).
- You can usually exchange part of pension for a lump sum at retirement (commutation, currently modeled at 12:1).
- Your normal pension age in this section is linked to State Pension age in most cases.
- Part-time work still builds pension, based on actual pensionable pay earned.
What this calculator estimates
This page estimates your projected annual pension at retirement using your current pay, assumed pay progression, and inflation assumptions. It also provides:
- Estimated pension built from future service
- Revalued value of pension already accrued in the 2015 section
- An illustrative maximum lump sum and reduced pension (for planning only)
- A rough estimate of total employee contributions before retirement
Assumptions used in the model
1) Annual accrual
For each year until retirement, pension earned for that year is calculated as:
Accrual = pensionable pay / 54
2) Revaluation
Each slice is revalued from the time it is earned until retirement at:
Revaluation = CPI + 1.5%
3) Pay growth
Your future pensionable pay is projected using your annual pay growth input. This is a simple constant-growth assumption and does not model promotions, career breaks, overtime rules, or changes in pensionable allowances.
4) Contribution estimate
The contribution estimate uses a simplified salary-tier approach for planning. Actual contribution rates and pay definitions can change and may differ for your specific role, employer, and year.
How to use this calculator effectively
- Run a base case (e.g., CPI 2%, pay growth 2%).
- Run a conservative case (lower pay growth, higher inflation uncertainty).
- Run an optimistic case (promotion path and stronger earnings).
- Compare outputs with your NHS statements annually.
Practical planning ideas for NHS staff
Review retirement timing
Even a small change in retirement age can materially affect the outcome because you gain additional accrual years and reduce the period with no further pension build-up.
Track pensionable vs non-pensionable pay
Not all earnings are pensionable in every context. For accurate planning, make sure your assumptions reflect pensionable pay rather than gross pay alone.
Understand commutation trade-offs
Taking a lump sum reduces annual pension for life. For some people this is useful for debt repayment or flexibility; for others, preserving indexed annual income is more valuable.
Limitations and disclaimer
This model is intentionally simple so that the calculation remains transparent. Real outcomes may differ due to:
- Changes in legislation, scheme rules, or contribution tiers
- Breaks in service, parental leave impacts, or reduced hours
- Early or late retirement factors
- McCloud remedy implications for eligible members
- Tax rules, annual allowance, and lifetime allowance policy changes
For decisions about retirement dates, commutation, or tax strategy, consider speaking with a qualified financial adviser familiar with NHS pensions.