1. What is the NHS 2015 CARE Pension?

The NHS 2015 CARE (Career Average Revalued Earnings) pension scheme calculates your pension as 1/54th of your pensionable earnings each year, with each year's pension revalued annually. This scheme provides a secure retirement income based on your career average earnings.

2. How Does the Calculator Work?

The calculator uses the NHS 2015 CARE pension formula:

Where:

• \( Pension \) — Total annual pension amount (GBP)
• \( PE \) — Pensionable earnings each year (GBP)
• \( \frac{1}{54} \) — Annual accrual rate (approximately 1.85%)
• \( \sum \) — Sum over all years of service

Explanation: Each year, you accumulate 1/54th of your pensionable earnings as pension. The total pension is the sum of these annual amounts over your entire career.

3. Importance of Pension Calculation

Details: Accurate pension calculation helps NHS staff plan for retirement, understand their pension benefits, and make informed decisions about career progression and retirement timing.

4. Using the Calculator

Tips: Enter the number of years of NHS service and your annual pensionable earnings in GBP. The calculator assumes consistent annual earnings - for variable earnings, calculate each year separately and sum the results.

5. Frequently Asked Questions (FAQ)

Q1: What is included in pensionable earnings?
A: Pensionable earnings typically include basic salary plus any regular additional payments, but exclude overtime and certain allowances. Check your NHS pension statement for exact details.

Q2: How is the pension revalued each year?
A: Each year's pension amount is revalued annually in line with CPI (Consumer Prices Index) plus 1.5% to maintain its value against inflation.

Q3: What is the normal pension age in the 2015 scheme?
A: The normal pension age is equal to your State Pension age, which varies depending on your date of birth.

Q4: Can I take my pension early?
A: Yes, but early retirement usually results in an actuarial reduction to account for the longer payment period.

Q5: Are there contribution rates?
A: Yes, contribution rates are tiered based on your pensionable earnings, ranging from 5.2% to 14.5% of your salary.