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Teachers' Pension Calculator 2025/26

Project your TPS pension under the career average (CARE) scheme with 1/57th accrual. See your contribution tier for 2025/26, employer contribution (28.68%), and why opting out almost never makes sense.

£
Your gross annual pensionable salary
Total years of pensionable service (past + projected)
Most current teachers are in the 2015 CARE scheme

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How to Use This Calculator

My Teacher's Pension tab

Enter your annual salary, years in the scheme, and select your pension scheme (Career Average 2015, Final Salary 1/60th, or Final Salary 1/80th). The calculator projects your annual and monthly pension at Normal Pension Age (NPA). For the 2015 CARE scheme, it uses the 1/57th accrual rate. For pre-2015 service, it uses 1/60th or 1/80th with automatic lump sum. It also shows your employee and employer contribution rates and death in service benefit.

Contribution Rates tab

Enter your annual salary and the calculator instantly shows which of the six contribution tiers you fall into for 2025/26, your monthly and annual employee deduction, and the employer contribution (28.68%). All six tiers are displayed so you can see where you sit relative to the band thresholds.

Should I Opt Out? tab

Enter your salary to see a full breakdown of what you would lose by opting out. The calculator shows the employer contribution you forfeit (28.68% of salary), the pension you lose each year, death in service benefit, and compares with a hypothetical ISA. The verdict: almost never opt out.

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The Formula

The Teachers' Pension Scheme uses a Career Average Revalued Earnings (CARE) formula from April 2015:

2015 CARE Scheme:
Annual Pension Slice = Pensionable Earnings × 1/57
Revalued Pension = Pension Slice × (1 + CPI + 1.6%)years to NPA
Total Pension at NPA = Sum of all revalued annual slices

Pre-2015 Final Salary:
1/60th scheme (2007–2015): Final Salary × Years × 1/60
1/80th scheme (pre-2007): Final Salary × Years × 1/80 + automatic lump sum (3 × annual pension)

Employee Contribution (2025/26):
Up to £34,872: 7.4%
£34,873 – £46,943: 8.9%
£46,944 – £55,660: 9.9%
£55,661 – £73,768: 10.5%
£73,769 – £100,590: 11.6%
£100,591+: 12.0%

Employer Contribution: 28.68% (from April 2024, incl. 0.08% admin levy)

Under the CARE scheme, each year of service earns you 1/57th of that year's pensionable salary as pension. This pension slice is then revalued each year by CPI + 1.6% until you reach your Normal Pension Age (NPA), currently 67. The revaluation means your pension keeps pace with inflation and then some. For pre-April 2015 service, the final salary scheme applies, and the McCloud remedy ensures no member is disadvantaged by the 2015 transition.

Example

Sarah — M6 Secondary Teacher, £35,000, 20 years of service

Sarah earns £35,000 and has been in the TPS for 20 years, all under the 2015 CARE scheme. She wants to know her projected pension at NPA.

Step 1: Calculate annual pension

Pensionable salary£35,000
Years in scheme20
Accrual rate1/57th
Annual pension (35,000 × 20 / 57)£12,280.70

20 years at 1/57th: approximately £12,281/year at NPA, plus CPI+1.6% revaluation applied each year until retirement.

Step 2: Check contribution tier

Salary£35,000
Tier (2025/26)8.9% (£34,873–£46,943)
Annual employee contribution£3,115
Monthly employee contribution£259.58
Employer contribution (28.68%)£10,038/year

For every £260 Sarah pays per month, her employer adds £836 — a 3.2x match. This is one of the most generous pension schemes in the UK.

Step 3: Should she opt out?

If Sarah opted out, she would lose £10,038/year in employer contributions, plus a guaranteed, index-linked pension and a £105,000 death-in-service lump sum. Even with a salary sacrifice ISA, she cannot replicate the TPS value. Verdict: do not opt out.

FAQ

The Teachers' Pension Scheme (TPS) is a statutory Defined Benefit (DB) pension scheme for teachers in England and Wales. From April 2015, it uses a Career Average Revalued Earnings (CARE) model: each year, 1/57th of your pensionable earnings is added to your pension account and revalued annually by CPI + 1.6%. Your Normal Pension Age (NPA) is linked to the State Pension Age (currently 67). The scheme is backed by the UK government, making it one of the most secure pensions available. Source: Teachers' Pensions (teacherspensions.co.uk).
From April 2025, TPS employee contributions are based on six salary tiers: up to £34,872: 7.4%; £34,873–£46,943: 8.9%; £46,944–£55,660: 9.9%; £55,661–£73,768: 10.5%; £73,769–£100,590: 11.6%; over £100,591: 12.0%. Tiers 2–6 increased by 0.3 percentage points from 2024/25. The salary bands increased by 1.7% in line with CPI. The employer contribution rate is 28.68% (from April 2024). Source: GOV.UK, Teachers' Pensions.
Almost never. The TPS employer contribution of 28.68% is one of the highest in the UK — for a £35,000 salary, your employer pays over £10,000/yr into your pension. If you opt out, you lose this entirely, plus a guaranteed index-linked pension for life and death-in-service benefits (3x salary lump sum). Even investing your employee contribution at high returns typically cannot match the TPS value. The only scenario where opting out might make temporary sense is if you have extremely high-interest debt or are leaving teaching within weeks.
In 2015, the TPS transitioned from a final salary scheme to a career average (CARE) scheme. The McCloud/Sargeant legal case found that the transitional protections given to older members were age-discriminatory. The McCloud remedy (effective October 2023) gives all members who were in service before and after April 2015 the better of final salary or CARE benefits for the "remedy period" (April 2015 to March 2022). Teachers' Pensions automatically calculates which option gives you the higher pension. Source: Teachers' Pensions, GOV.UK.
Yes, but with an actuarial reduction. You can take your TPS pension from age 55 (rising to 57 from April 2028). Taking it before your NPA (currently 67) results in a reduction of approximately 3–5% per year of early retirement to reflect the longer payment period. For example, retiring at 60 with an NPA of 67 means roughly a 21–35% reduction. You can also take phased retirement, drawing part of your pension while continuing to work and build further pension. There is no actuarial reduction if you take your pension at or after your NPA. Source: Teachers' Pensions.

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