Final salary pension
A defined benefit pension where your retirement income is based on your salary at or near the time you leave the scheme.
Final salary pensions calculate your pension using your pay at retirement (or the best of your last few years) multiplied by your years of service and the accrual rate. They're extremely generous for workers whose pay rises significantly during their career, because the final salary lifts the value of ALL their years of service.
Most UK public sector DB schemes have moved from final salary to CARE (career average) since 2014-2015. Legacy final salary benefits from service before the transition are preserved. The NHS 1995 section (1/80 + 3/80 lump sum), TPS pre-2007, LGPS pre-2008, and civil service classic all used final salary.
A teacher with 20 years in the pre-2007 TPS scheme on a final salary of £50,000 would receive 20 × £50,000 / 80 = £12,500/year pension plus a £37,500 automatic lump sum.
This calculator provides estimates based on 2025/26 tax rates and is not financial advice. Scottish taxpayers are subject to different income tax rates and bands. The calculations assume your salary is your only source of income and do not account for benefits in kind or other taxable income.
For personalised guidance on your pension contributions, speak to an FCA-regulated financial adviser. You can find one via Unbiased or VouchedFor.