Ways to Boost Your NHS Pension: Additional Pension, ERRBO and AVCs
The NHS Pension is generous, but there are ways to add to it or retire earlier. Here are the main options, with the pros and cons of each.
Updated · 4 min read
Try it with your own numbersNHS Pension at Retirement EstimateMost NHS staff build a valuable pension just by staying in the scheme. But if you want a bigger pension, or to retire before your normal pension age without a large reduction, the scheme offers several ways to pay in more. This guide explains them in general terms.
This is general information, not financial advice. The value of each option depends on your age, health, tax position and plans. NHS Pensions can give you quotes for your own record.
1. Buy additional pension
In the 2015 scheme, you can buy extra yearly pension, in multiples of £250 up to a yearly limit set by the scheme. You can pay:
- by regular contributions from your pay over one or more years
- by a single lump sum
The cost depends on your age and the option you choose. Additional pension is paid alongside your main pension and is increased in line with inflation. You can buy pension for yourself only, or with benefits for a partner and dependants, which costs more.
Contributions get tax relief at your highest rate, because they come out of your pay before tax.
2. Early retirement reduction buy out (ERRBO)
If you are in the 2015 scheme and want to retire before your normal pension age, your pension will usually be reduced for early payment. ERRBO lets you pay extra contributions to remove that reduction for retirement up to three years early, as long as you retire at 65 or later.
For example, if your normal pension age is 67, ERRBO could let you retire at 65 without a reduction. You need to elect for it in advance and keep paying until you retire. It is not available for retirement before 65.
3. Additional voluntary contributions (AVCs)
AVCs are separate pension savings, usually in a defined contribution pot run by an approved provider linked to the scheme. You choose how much to pay and, in many cases, how it is invested. At retirement, AVCs can be used in several ways, depending on the provider and rules at the time.
AVCs are flexible, but unlike the NHS Pension, there is no guaranteed income. The value depends on investment returns and charges.
4. Personal pensions and workplace schemes elsewhere
You can also save into a personal pension or a stocks and shares ISA outside the NHS scheme. These can be more flexible, especially if you want to access savings before pension age, but they do not come with the guarantees of the NHS Pension.
Which option suits whom?
| Option | Main benefit | Main drawback |
|---|---|---|
| Additional pension | guaranteed extra income, rising with inflation | can be expensive at older ages |
| ERRBO | retire earlier without a reduction | only up to three years, and not before 65 |
| AVCs | flexible, your own pot | no guarantee, investment risk |
| ISA or personal pension | flexible access | no employer contribution, no guarantee |
Before you pay more in
- Check the annual allowance. Extra pension growth counts towards it. Most staff will not be affected, but senior staff should check. See our annual allowance guide.
- Check your record. Make sure your service and pay are correct first, through the member portal.
- Think about access. Pension savings cannot usually be taken before the minimum pension age, currently 55 and rising to 57 from April 2028.
Common questions
Can I stop paying for additional pension? Generally yes, and you keep the pension already bought, but check the terms.
Is ERRBO available in the 1995 or 2008 sections? No. It is a 2015 scheme option.
Do AVCs get employer contributions? No. Only your own money, plus tax relief.
What extra contributions really cost
Contributions for additional pension and ERRBO are taken from your pay before tax, so tax relief is given at your highest rate:
| Your tax rate | Cost of £100 in contributions |
|---|---|
| Basic rate, 20% | £80 |
| Higher rate, 40% | £60 |
| In the £100,000 to £125,140 taper, effectively 60% | £40 |
That relief is one reason paying more in can be good value for higher earners. But money in a pension cannot usually be taken until at least age 55, rising to 57 from April 2028. Keep enough accessible savings for emergencies first.
Estimate your pension
Use the pension retirement calculator to project your 2015 scheme pension, and the pension age calculator to check your normal pension age.
This guide explains the general rules for staff in England using 2026/27 figures. It is not financial advice. Your employer, payslip or NHS Pensions statement has the final word on your own pay.