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Teacher Pension Formula:
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The UK Teacher Pension Scheme is a career average revalued earnings (CARE) scheme that provides retirement benefits for teachers in the United Kingdom. It calculates pension based on average earnings throughout the teacher's career, adjusted for inflation.
The calculator uses the UK teacher pension formula:
Where:
Explanation: The formula calculates the annual pension amount based on the teacher's career average earnings, with the 1/57 accrual rate determining how much pension is earned for each year of service.
Details: Accurate pension calculation is crucial for retirement planning, financial security, and understanding the benefits earned through years of teaching service in the UK education system.
Tips: Enter your career average earnings (revalued) in GBP. This should represent your average earnings throughout your teaching career, adjusted for inflation and revaluation factors.
Q1: What are career average revalued earnings?
A: This is your average salary throughout your career, adjusted annually for inflation to maintain its real value.
Q2: How is the 1/57 accrual rate applied?
A: Each year you work, you earn 1/57th of your pensionable earnings for that year as part of your annual pension.
Q3: When can teachers claim their pension?
A: Typically at your Normal Pension Age (linked to your State Pension age) or from age 55 with actuarial reduction.
Q4: Are there additional benefits in the teacher pension scheme?
A: Yes, the scheme also provides death benefits and ill-health retirement benefits in addition to the main pension.
Q5: How does revaluation work?
A: Your pension benefits are revalued each year in line with inflation (CPI) plus 1.6% to maintain their value.