NHS Pension Lump Sum Calculator
How much tax-free cash you can take and what it costs each year.
Your details
£
From your NHS Pensions annual benefit statement.
£
Up to £85,714.
Tax-free lump sum
£0
Yearly pension becomes £20,000
- Largest lump sum available
- £85,714
- Yearly pension given up
- £0
- Monthly pension after
- £1,666.67
- Years of pension to recoup the extra cash
- None given up
Each £1 of yearly pension swapped gives £12 of cash. Pension increases with inflation are not included.
How it is worked out
- 1For every £1 of yearly pension you give up, you get £12 as a tax-free lump sum.
- 2In the 1995 section you automatically get a lump sum of three times your yearly pension, and can swap more pension for cash on top.
- 3The total lump sum is limited to about a quarter of the value of your benefits, which works out at roughly 4.3 times your yearly pension.
Worth knowing
- The break-even figure ignores inflation increases to your pension, which make the true break-even point a little longer.
- Your NHS Pensions statement shows your actual pension and lump sum options.
Common questions
Is the NHS pension lump sum tax free?+
Yes, within the normal limits. Most NHS members can take their full lump sum without paying tax on it.
Sources
The rules and figures behind this calculator come from:
- NHS Business Services Authority: Lump sum allowances
- GOV.UK: Lump Sum Allowance
- NHS Business Services Authority: Applying for your pension
Results are estimates for Agenda for Change staff in England using 2026/27 figures. They are not financial advice. Your payslip, employer or NHS Pensions statement has the final word.
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