When can I take my Teachers' Pension?

In full at your normal pension age, which for career average is your State Pension age. From the minimum pension age (55; 57 from April 2028 unless you have a protected pension age) you can take it early, reduced by the scheme's actuarial factors for each year early.

How much tax-free cash can I take from the Teachers' Pension?

Career average has no automatic lump sum. You can give up £1 a year of pension for £12 of tax-free cash, up to about 4.3 times the pension, which leaves about 64% of it as income.

Teachers' pension calculator: career average in today's money

Q: How is the Teachers' Pension career average worked out?

Each year adds 1/57th of that year's pensionable earnings. While you remain a member, the total is revalued each year in line with prices plus 1.6%, so in today's money it grows about 1.6% a year on top of what you add; after you leave it rises in line with prices. A teacher on £38,000 adds about £667 a year of pension for each year taught.

What your Teachers' Pension Scheme career average pension could be at your normal pension age, or earlier, in today's money: from the pension on your annual benefit statement, your salary and the years you still have to teach, with the tax-free cash it could buy. Then add it to your plan in one step. Your figures never leave your browser.

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Worked example

Computed when this page was built by the same engine that runs the calculator above, so the figures below and the live tool can never disagree. Change any input above to see your own.

Inputs
Age	40
Pension built up so far	£6,000 a year
Pensionable pay	£38,000
Pay rises	2.5% a year (inflation 2.5%)

Results
Pension at 68, today's money	£32,808 a year
Of which still to be earned	£18,667
Revaluation above inflation	£8,142
Tax-free cash, at most	£134,373, leaving £21,610 a year

The next question

When does taking it early break even? →Defined benefit early retirement calculator

Or answer it with everything else: the full Hundred Summers plan connects your pay, pensions, savings, property, tax and spending year by year, and stress-tests them across 500 simulated market histories.

Read the guide

What a defined benefit pension is actually worth →
NHS, teachers, civil service, old company schemes: why £10,000/yr of final-salary pension is worth more than most people's entire pension pot, how to compare added-pension offers, and why transferring out is almost always wrong.

How it builds up

Each year you earn 1/57th of your pensionable earnings as pension. While you are in the scheme, everything built up so far is revalued each year in line with prices plus 1.6%, so in today's money it grows about 1.6% a year on top of what you add. After you leave it is increased in line with prices alone, so it keeps its value but stops growing in real terms. Because it is career average, years part-time or on lower pay add less without reducing what is already built up. This is the scheme for England and Wales; Scotland and Northern Ireland run their own teachers' schemes.

Your normal pension age

Your normal pension age is your State Pension age, and it moves if your State Pension age changes: 67 for most people working today and 68 for younger people, under the law as it stands. The calculator works it out from your age.

Taking it early, and tax-free cash

The minimum pension age is 55, rising to 57 on 6 April 2028 except for members with a protected pension age: those who, before 4 November 2021, had the right to take their pension at 55. From the minimum pension age you can take it early, reduced for each year before your normal pension age by the scheme's actuarial early retirement factors, for life. The calculator uses one rate a year as an estimate; the scheme's own factors, which vary with your age and how early you go, are the authority. There is no automatic lump sum: you can give up £1 a year of pension for £12 of tax-free cash, up to the most the tax rules allow, about 4.3 times the pension, which leaves about 64% of it as income.

If you were in the final salary arrangement

If you were in the final salary arrangement on or before 31 March 2012 and worked in the scheme between 1 April 2015 and 31 March 2022, the McCloud remedy treats that period's service as service in your older section and lets you choose, when you take your pension, which benefits to have for it. Your annual benefit statement shows the options; this calculator covers career-average benefits only.

Into your plan

One pension is only part of the picture. Add this pension to my plan opens Hundred Summers with it ready to add, in today's money from the age you choose, to be projected with your State Pension, savings, spending and tax year by year. The defined benefit early retirement calculator shows when taking it early breaks even, and the tax-free lump sum calculator what the cash costs in income.

Education, not advice. An estimate in today's money from the scheme's published rules, before tax: it leaves out added pension, partial and late retirement, and the scheme's exact early retirement factors. Your annual benefit statement and the scheme's own guidance are the authority. For a personal recommendation speak to an FCA-regulated financial adviser; free guidance is available from MoneyHelper.

Sources

Teachers' Pensions, Career average.
House of Commons Library briefing SN06731 (archived copy), Teachers' pensions.
GOV.UK, State Pension age; HMRC, Increasing normal minimum pension age; HMRC, PTM063240: the pension commencement lump sum's permitted maximum.