NHS pension schemes explained

What is the NHS pension scheme?

The NHS Pension Scheme is open to all NHS employees. The rules of the scheme vary depending on when you joined it.

Here we explain how much you contribute and how much the scheme will pay out when you retire.

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NHS pensions: which scheme applies to me?

There are three different 'sections' of NHS Pension Scheme - the 1995 Section, the 2008 Section and the 2015 Section.

The 1995 and 2008 Sections of the NHS Pension Scheme pay a final salary pension. The 2015 Section pays an income based on your career average earnings, which is less generous than the final salary scheme.

Some people who were members of the original 1995 or 2008 sections of the NHS pension scheme were moved into the 2015 Section on 1 April 2015.

But others qualify for 'protection' because they were close to retirement age when the changes were introduced.

How much do I contribute to my NHS pension?

Both full-time and part-time workers pay a percentage of their pensionable pay into their pension each month. This is topped up by employer contributions as well as pension tax relief.

As of April 2019, the employer contribution rate is 20.68%, which includes a scheme administration charge of 0.08%.

Employee contribution rates for 2025-26 are shown below as a percentage of gross salary (before tax relief). 

When can I collect my NHS pension?

You get your pension at what is called the 'normal pension age'. This is the age that you retire from working for the NHS and have your pension paid without facing a reduction for early payment.

You can retire early and claim your pension once you reach the minimum pension age (55). However, your pension benefits will be reduced, to reflect the fact that your pension will pay out for longer.

Your normal retirement age varies depending on what section of the scheme you're in.

• 1995 Section - normal retirement age is 60
• 2008 Section - normal retirement age is 65
• 2015 Section - normal retirement age is your state pension age.

If you've built up benefits in more than one section of the scheme, you can take them when you reach your normal pension age - without having them reduced.

So, if you were part of the 1995 Section, for example, you could claim your pension at 60 and carry on working. However, you cannot undertake NHS work for more than 16 hours a week in one month after you collect your pension.

How much will a NHS pension pay in retirement?

The amount of income you'll be paid from your NHS pension depends on the scheme you're in. If you're in both the 1995/2008 final salary scheme and the 2015 career average scheme, you'll get a combination of the two.

What happens if I have a break in service?

If you leave NHS employment and then return, what scheme you subsequently come under will depend on the length of the break and the level of protection you have.

Leaving and rejoining the 1995/2008 scheme

If you rejoin the NHS after 1 April 2015 after a break of less than five years and qualify for either full protection or tapered protection, you will rejoin the same section of the 1995/2008 Scheme.

If you have tapered protection, you'll either stay in the 1995/2008 Scheme until your transition date to move to the 2015 Scheme (a date determined by your age in years and months as at 1 April 2012) or move straight into the 2015 Scheme.

If you are not entitled to any protection, or move following the end of tapered protection, you'll go back into the 2015 Scheme and your benefits already built up in the 1995/2008 Scheme will be retained and calculated using a final salary pay rate.

If you return to the NHS after a break of more than five years then you'll join the 2015 scheme, and your 1995/2008 and 2015 benefits will be separate.

Leaving and rejoining the 2015 scheme

If you rejoin the NHS after a break of less than five years, you will benefit from having your old benefits linked to the new ones you build up, so that your total benefits enjoy more generous annual increases to cover inflation. This is known as 'revaluation'.

If you come back after five years, your pensions don't get linked. Your new benefits will be instead increased by a government-set measure, currently the Consumer Prices Index. In 2019, that was 2.4%.

What happens to my NHS pension when I die?

The NHS Pension Scheme provides a lump sum and pension benefits in the event of your death.

Lump sum on death

You can nominate that your spouse, registered civil partner or qualifying nominated partner receive a lump sum when you die. The lump sum will be around 2x annual earnings.

Adult dependant's pension

An adult dependant's pension is payable for life to an eligible spouse, civil partner or nominated qualifying partner. The benefit is worth around 34% of the full pension.

Children's pension

Children's pensions are payable for an eligible child or children under the age of 23. The benefit is worth around 17% of the full pension.

NHS pensions and the annual allowance

The annual allowance, worth £60,000 in 2025-26, is the cap on the amount you can save every year into your pension and still earn tax relief.

Exceeding the annual allowance means that you do not receive pension tax relief on any contributions over this limit and you may have to pay an 'annual allowance charge'.

Previous cuts to the annual allowance had been blamed for higher earners – in particular senior NHS doctors – retiring early to avoid large tax bills.

What is the annual allowance taper?

If you earn more than £200,000 and your income including pension contributions (known as 'adjusted income') is more than £260,000, your annual allowance starts to fall. 

This is known as the 'tapered annual allowance'. You lose £1 of the annual allowance for every £2 of adjusted income you earn above £260,000.

If you earn in excess of £360,000, your annual allowance will taper down from £60,000 to the minimum of £10,000.