Answers · UK 2025/26

How does the NHS Pension Scheme work in 2026/27?

The NHS 2015 Scheme is a career average defined benefit pension. You build up 1/54th of your pensionable pay each year, revalued annually by CPI+1.5%. Normal Pension Age is 67. Employee contributions are tiered from 5.2% to 13.5% of pay, with employers contributing 23.7%. A 20-year career on £40,000 gives roughly £14,815 per year.

Last updated: 10 June 2026Last reviewed: 10 June 2026How we verify

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The NHS Pension Scheme 2015 is a career average revalued earnings (CARE) scheme. Each year of membership you accrue a pension of 1/54th of your actual pensionable earnings for that year. Those annual slices are revalued each April by CPI plus 1.5 percentage points, so your pension keeps pace with inflation and then some throughout your career. The Normal Pension Age (NPA) is linked to the State Pension Age, currently 67. You can take your pension from age 55 (rising to 57 in 2028) with an actuarial reduction, or defer it beyond NPA for an enhancement. Employee contributions are tiered by annual pensionable pay: 5.2% up to £13,259; 6.5% on £13,260-£26,831; 8.3% on £26,832-£32,691; 9.8% on £32,692-£49,078; 10.7% on £49,079-£62,924; and 12.5% on £62,925 and above (senior tier 13.5% above £111,377 for some). Employers contribute 23.7%. Worked example: a nurse earning £40,000 for 20 years accrues 1/54th x £40,000 x 20 = £14,815 per year at retirement (in today's money before revaluation). At retirement you can also commute pension for a tax-free lump sum at a 12:1 ratio -- giving up £1,000 per year of pension for £12,000 cash. Death in service provides a lump sum of twice your pensionable pay plus a survivor pension of roughly 37.5% of the pension you had earned. If your pension input exceeds the annual allowance (£60,000), consider Mandatory Scheme Pays to have the scheme settle the HMRC charge. The McCloud remedy may also affect those who were members before April 2012.