Teachers’ Pensions Lump Sum Calculator

Plan your Teachers’ Pension

Stop guessing. Use our tools to project your income, calculate tax-free cash, and understand your options.

NEW Total Pension Projector
Combine Final Salary & CARE pots. Model McCloud, Phased Retirement & Salary Growth.
Pensions Home
Early Retirement
Phased Retirement
2026/27 rules: where commutation is available, every £1 of annual pension exchanged provides £12 of lump sum. NPA 60 / 1/80ths benefits also include an automatic lump sum of three times the annual pension.
The standard 2026/27 Lump Sum Allowance is £268,275. Enter your remaining allowance below if you have already used some of it, or a different figure if you hold a protected allowance.

1. Pension at retirement

Enter annual pension amounts after any early-retirement adjustment.

£
Includes an automatic 3× lump sum.
£
No automatic lump sum.
£
No automatic lump sum.

2. Check commutation and tax-free allowance

£
Standard 2026/27 allowance: £268,275. Use the amount you still have available.
TPS requires service on or after 1 January 2007 before additional pension can be exchanged for a larger lump sum.

3. Choose your cash option

£
Extra cash is in addition to any automatic NPA 60 lump sum.
£

See the effect on your retirement plan

Taking more cash reduces annual pension permanently. Compare the result with your projected pension and early-retirement options before making a decision.

Open full pension simulator Compare early retirement

Support TeacherPayCalculator

If this website helped you understand your pay or pension, you can support future development and hosting with a one-off Ko-fi donation. The tools here take a huge amount of time and effort to build and maintain – all on top of our teaching jobs! No personal data is ever stored. Made for teachers, by teachers.

If this website helped you, you can support future development and hosting with a one-off Ko-fi donation. Made for teachers, by teachers.

Lump sum FAQs

Where commutation is available, each £1 a year of pension you give up provides £12 of lump sum.

Teachers’ Pensions says you need pensionable service on or after 1 January 2007 to use the commutation option. Members with only earlier 1/80ths service still receive their automatic lump sum but cannot exchange more pension for extra cash.

The standard individual Lump Sum Allowance is £268,275 in 2026/27. It applies across relevant pension lump sums, not just Teachers’ Pensions. Your remaining allowance may be lower if you have already used some of it, or higher if you have protected rights.