Teachers’ Pension Calculators & Guides
The Teachers’ Pension Scheme (TPS) is made up of three sections depending on when you taught: Final Salary 1/80ths, Final Salary 1/60ths, and the current CARE 2015 scheme. Each builds pension differently and has different lump sum rules.
Scheme section | When it applied | How pension builds | Lump sum rules |
---|---|---|---|
Final Salary (1/80ths) | Up to 31 Dec 2006 | Each year = 1/80 of your final average salary | Automatic lump sum = 3× your pension. Extra cash by commutation. |
Final Salary (1/60ths) | 1 Jan 2007 – 31 Mar 2015 | Each year = 1/60 of your final average salary | No automatic lump sum; you can create one by commutation (swap pension for cash). |
CARE (Career Average) | From 1 Apr 2015 | Each year = 1/57 of that year’s pay; revalued annually by inflation | No automatic lump sum; commutation allowed. |
Example: A teacher with £12,000 CARE and £8,000 Final Salary (1/60ths) could swap £2,000/year of pension for £24,000 cash at retirement, leaving £18,000/year income. The Lump Sum Calculator shows the trade-offs instantly.
Teachers’ Pension Calculators
Use these free tools to explore how your pension builds and what choices you have at retirement. Each calculator has plain-English labels and examples.
Lump Sum Calculator (Final Salary & CARE)
See how swapping part of your pension for a tax-free lump sum affects your yearly income. Handles automatic 1/80ths cash and extra commutation across sections with HMRC caps applied.
Career Average (CARE) Impact Calculator
Model how breaks, part-time work or rejoining change your CARE pension. Add past events, or start now and project to retirement.
Deferred vs Active Growth Calculator
Compare two paths: deferred (leave now, grows with CPI only) vs active (stay in, grows with CPI + 1.6% in TPS). Enter your current CARE and years to retirement.
Teachers’ Pensions – Quick FAQs
- 1/80ths (Final Salary, NPA 60): Service up to 2006; builds 1/80 per year; automatic lump sum.
- 1/60ths (Final Salary, NPA 65): 2007–2015; builds 1/60 per year; no automatic lump sum.
- CARE 2015: From April 2015; builds 1/57 of each year’s pay; revalued by inflation.
1/80ths includes an automatic lump sum = 3× the pension. For 1/60ths and CARE (and to add extra to 1/80ths), you can create cash by commutation — swapping £1/year pension for £12 cash. Try the Lump Sum Calculator.