Pensions Increase for 2026/27: 3.8% (from 6 April 2026). This is an estimate — for your official projection visit teacherspensions.co.uk.
Teachers Pension Estimator
2015 Career Average (CARE) Scheme · 2026/27
What Is the Teachers' Pension Scheme?
The Teachers' Pension Scheme (TPS) is a statutory, defined benefit pension scheme for teachers in maintained schools and many independent schools in England and Wales. It is one of the most generous occupational pension schemes available in the UK, backed by the government and providing a guaranteed income for life in retirement.
Since April 2015, all new pension accrual takes place under the Career Average Revalued Earnings (CARE) scheme. Benefits built up before 2015 in the legacy final salary arrangements are fully protected, and under the McCloud remedy, teachers were also given a choice regarding which scheme rules apply to the "remedy period" of 2015–2022.
How the Career Average Scheme Works
Each year you teach and remain an active member, 1/57th of your pensionable earnings (including overtime) is added — or "banked" — to your CARE pension pot. So if you earn £57,000, you add exactly £1,000 of pension that year. If you earn £34,200, you add £600.
Each year's slice is then revalued by CPI + 1.6% each April while you are an active member. At retirement, all the revalued annual slices are totalled to give your final annual pension. Once in payment, your pension increases each April in line with CPI (3.8% in April 2026).
Teachers' Pension Contribution Rates 2026/27
From 1 April 2026, employee contribution tiers were revalued by CPI indexation of 3.8%. Your rate depends on your actual annual pensionable pay. The employer contribution rate remains at 28.68% — one of the highest employer rates of any UK public sector scheme.
| Tier | Annual Pensionable Pay (2026/27) | Employee Rate | Employer Rate |
|---|---|---|---|
| Tier 1 | Up to £36,198 | 7.4% | 28.68% |
| Tier 2 | £36,199 – £48,727 | 8.9% | 28.68% |
| Tier 3 | £48,728 – £57,776 | 9.9% | 28.68% |
| Tier 4 | £57,777 – £76,572 | 10.5% | 28.68% |
| Tier 5 | £76,573 – £104,413 | 11.6% | 28.68% |
| Tier 6 | £104,414 and above | 12% | 28.68% |
💡 Employer contribution value: At 28.68%, your employer pays nearly £12,000 per year in pension contributions for a teacher earning £41,000 — equivalent to a hidden salary top-up of almost 30%. This makes the TPS one of the highest-value benefits in public sector employment.
Key Features of the Teachers' Pension Scheme
Normal Pension Age (NPA)
Under the 2015 CARE scheme, your Normal Pension Age (NPA) is your State Pension age, or age 65 — whichever is higher. For most teachers currently in service, this is age 67. You can retire earlier, but benefits taken before your NPA are reduced by an actuarial factor. Benefits taken after NPA attract a late retirement uplift.
Early Retirement
You can draw your Teachers' Pension from age 55 (rising to 57 from 2028). Taking it early means applying an actuarial reduction of approximately 5% per year before your NPA. A teacher retiring at 62 instead of 67 would have their pension reduced by roughly 25%. However, this can still be financially viable depending on your health and other income.
Phased Retirement (Flexible Retirement)
One of the most distinctive features of the TPS is flexible retirement. If you reduce your salary by at least 20% (by moving to part-time or a lower pay grade), you can draw part of your accrued pension while continuing to teach and build up further pension. This option is available from age 55 and does not require a formal reduction in work hours in all cases — subject to your employer's agreement.
Death in Service Benefits
If you die while an active member, a death gratuity of three times your final salary is payable to your estate or nominated beneficiary. Dependants' pensions are also payable — a spouse or civil partner receives half your pension for life, with children's pensions available for qualifying dependants. These benefits are included within your standard contributions.
Ill Health Retirement
If you become permanently incapacitated before reaching NPA, you can apply for ill health retirement. A Tier 1 award pays your pension immediately without reduction. A Tier 2 award enhances your pension with additional years of service. Both tiers are available regardless of age and without the early retirement actuarial reduction.