Teachers' Pension Calculator
Project your Teachers' Pension Scheme (TPS) benefits — career average (1/57th) and final salary calculations with 2026/27 contribution tiers.
By Konstantin Iakovlev · Founder, Calks.uk
Last updated: · Verified against HMRC and GOV.UK 2026/27 rates
Projected Annual Pension at Retirement
£39,008.54
£3,250.71/month
This Year's Accrual
£701.75/yr
Contribution Rate
8.6%
Monthly Contribution
£286.67
Max Lump Sum (optional)
£117,025.63
Career average scheme: 1/57th of pensionable salary accrued each year, revalued annually by CPI + 1.6%. Normal pension age is linked to State Pension age. This is a simplified projection.
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
The Teachers' Pension Scheme (TPS) is a defined benefit career average revalued earnings (CARE) pension. Each year of service accrues 1/57th of your pensionable pay for that year as a pension entitlement. That annual slice is then revalued each April by CPI + 1.6% until you retire, protecting its real value.
Member contributions are tiered by salary band. For 2026/27: 7.4% up to £32,135; 8.6% on £32,136–£43,259; 9.7% on £43,260–£51,292; 10.2% on £51,293–£67,431; 11.7% on £67,432–£92,297; 12.4% above £92,297. Employer contributions are 23.68% of pensionable pay. Both employer and employee contributions attract tax relief.
Normal Pension Age is linked to State Pension Age (67, rising to 68). The pension is CPI-linked in payment. There is no automatic lump sum in the career average scheme, but you can commute pension at £12 lump sum for every £1/year of annual pension surrendered.
Teachers' Pension Scheme (TPS) 2026. Career Average Revalued Earnings (CARE) scheme since April 2015. Accrual rate 1/57 per year. Revaluation: CPI + 1.6% during career. Sample: 35 years' service, £50k career average = 35/57 × £50,000 = £30,702/year pension. Plus State Pension £12,000 = £42,702 total retirement income (excellent). Lump sum option: commute up to 25% of pension for lump sum at 12:1 ratio. Normal Pension Age: equal to State Pension Age (66+).
Employee and employer contributions. Teacher contribution: 7.4-11.7% (banded by salary). Sample: M1 (£31,650): 7.4% = £2,342/year. M6 (£43,607): 9.6% = £4,186. UPR1 (£45,646): 9.6%. Leadership (£60,000): 10.4%. £100,000 head: 11.7%. Employer contribution: 28.68% of salary — paid by school/DfE. Equivalent of 25%+ effective pay rise vs typical private sector employer pension (5-8%). Defined-benefit pension is the single biggest financial advantage of UK teaching.
Career options — Final Salary vs CARE. Pre-2015 service: Final Salary scheme — pension based on best final years' salary. Service 1995-2015: 80ths accrual rate (1/80 per year + 3/80 lump sum). 2015 onwards: CARE 1/57. Many teachers have hybrid — pre-2015 Final Salary preserved, post-2015 in CARE. Transitional protection (older teachers within 10 years of NPA in 2012) remained in Final Salary — McCloud judgment (2018) ruled this discriminatory — remedy ongoing 2024-2026.
Retirement options for teachers. Normal Pension Age (NPA): matches State Pension Age (66+ currently). Early retirement: from age 55 (rising to 57 from April 2028) — actuarial reduction 3-5% per year early. Phased retirement: take portion of pension while still working part-time. Ill-health retirement: full pension with no reduction if permanently unable to teach. Death-in-service lump sum: 3× pensionable salary. Spouse pension: 37.5% of teacher's pension to surviving spouse.
Pension projection — what to expect. 25-year teacher reaching M6 (£43k career average): annual pension ~£18,800 + State Pension £12k = £30,800/year. 35-year teacher mid-career headship (£60k average): annual pension ~£36,800 + SP = £48,800/year. Add personal AVC (Additional Voluntary Contributions) for more. Compare: private sector worker on £43k average with 5% pension contributions over 35 years: pot ~£200k = £8k/year drawdown — TPS gives £18,800 = 2.4× larger benefit despite same wages.
Example: Teacher earning £40,000, 20 years' service
- Annual accrual: £40,000 ÷ 57 = £701.75
- 20 years simplified (no revaluation): 20 × £701.75 = £14,035/year pension
- With CPI+1.6% revaluation on earlier accruals, actual pension higher
- Approximate monthly pension before tax: £1,170
Frequently Asked Questions
- How is the Teachers' Pension calculated?
- Under the 2015 career average scheme, you earn 1/57th of your pensionable salary each year as a pension accrual. That amount is revalued annually by CPI + 1.6% until retirement. For example, a year on £40,000 adds £701.75/year to your pension (£40,000 ÷ 57), which then grows with inflation plus 1.6% every year.
- What are the Teachers' Pension contribution rates for 2026/27?
- Member contribution rates for 2026/27 are: 7.4% (up to £32,135), 8.6% (£32,136–£43,259), 9.7% (£43,260–£51,292), 10.2% (£51,293–£67,431), 11.7% (£67,432–£92,297) and 12.4% (above £92,297). Employer contributions are 23.68%. All contributions attract income tax relief.
- When can I access my Teachers' Pension?
- Normal Pension Age for the 2015 career average scheme is linked to State Pension Age (currently 67, rising to 68 from 2044). You can take your pension earlier with an actuarial reduction, or later with an enhancement. The pension is CPI-linked in payment.