Comparing + more

🔥 Join the 15,000+ people who have taken control of their pension Get started →

Home › Pension Advice › Public Sector Pension AdvicePublic Sector
🏛️ Public Sector Pension Advice

Pension Advice for Public Sector Workers Maximise Your Public Sector Pension

Public sector pensions are among the most valuable in the UK. Whether you're in the civil service, local government, NHS or teaching, understanding your defined benefit pension is essential for planning your retirement.

  • FCA-regulated advisersFCA Advisers
  • Get Matched For FreeFree Matching
  • Takes 60 seconds to start60 Second Process
  • Rated 4.9★ online reviewsRated 4.9★ Online
Get Pension Advice →
Public Sector Pension Advice
15,000+
People Helped
FCA
Regulated Advisers
60s
To Get Started
4.9★
Online Rating
📋 Get matched

Find your perfect match in 60 seconds

Answer a few simple questions and get matched with an FCA-regulated pension adviser who can help with your specific situation.

What Is Public Sector Pension Advice?

Public sector pension advice is specialist financial guidance for the millions of UK workers in government-backed defined benefit pension schemes, including the NHS, Teachers’, Local Government (LGPS), Civil Service, Police, Fire, and Armed Forces pension schemes. These schemes share common characteristics – guaranteed income, inflation protection, and employer contributions far higher than the private sector – but each has its own unique rules, accrual rates, and retirement ages.

The 2015 public sector pension reforms moved most members from final salary to career average (CARE) schemes, creating a generation of workers with benefits split across legacy and reformed scheme sections. Combined with the McCloud remedy, which gives eligible members the choice of which scheme provides their 2015–2022 benefits, the pension landscape for public sector workers has never been more complex.

A specialist public sector pension adviser can help with:

  • Multi-scheme benefit calculations – understanding your projected pension across legacy and reformed scheme sections, including transitional protections.
  • McCloud remedy decisions – choosing whether your legacy or reformed scheme provides better benefits for the 2015–2022 remedy period.
  • Early retirement modelling – calculating the actuarial reduction for retiring before your normal pension age and whether it is financially viable.
  • Additional pension options – evaluating whether buying additional pension, additional voluntary contributions (AVCs), or private pension saving is the best use of your money.
  • Coordination with private savings – building an overall retirement plan that combines your DB pension with any private pensions, ISAs, and State Pension entitlement.
  • Divorce and pension sharing – ensuring public sector DB pensions are correctly valued and fairly divided in divorce settlements.
Key fact: Public sector employer pension contribution rates range from 16.5% (LGPS) to 31% (Police). By comparison, private sector employers typically contribute 3–10%. This makes public sector pensions extraordinarily valuable – a £40,000 salary with a 20% employer contribution means £8,000 per year going into your pension from the employer alone.
Scheme Comparison

Key Public Sector Pension Schemes Compared

While all public sector schemes share similar structures, the details differ significantly. Here is how the major schemes compare.

FeatureNHSTeachers’LGPSCivil Service
Accrual rate (reformed)1/54th1/57th1/49th1/44th or 2.32%
Normal pension ageState Pension ageState Pension ageState Pension ageState Pension age (alpha) or 60/65 (classic)
Employer contribution20.6%28.68%16.5%–22%27.1%–30.3%
Employee contribution5.1%–13.5%7.4%–11.7%5.5%–12.5%4.6%–8.05%
RevaluationCPI + 1.5%CPI + 1.6%CPICPI (alpha)
Important: Public sector DB pensions should almost never be transferred to a private pension. Transferring means giving up guaranteed, inflation-linked income backed by the government. FCA-regulated advice is legally required for DB transfers over £30,000, and the vast majority of transfers are not in the member’s best interest. Be extremely cautious of anyone encouraging you to transfer.
Who Is It For?

Who Benefits from Public Sector Pension Advice?

Whether you work for the NHS, a school, local council, or central government, these common situations show when specialist pension advice adds real value.

🏢

Benefits Across Legacy and Reformed Schemes

Most public sector workers who joined before 2015 have benefits in at least two scheme sections with different rules. Understanding how they combine, particularly at different retirement ages, is essential for accurate retirement planning.

Get a combined multi-scheme projection
📋

McCloud Remedy Choice

If you were transitioned to a reformed scheme between 2015 and 2022, you need to choose which scheme provides your remedy period benefits. This affects your pension amount and potentially your retirement age. Professional modelling is strongly recommended.

Model both McCloud options before deciding
⏰

Considering Early Retirement

Retiring before your normal pension age means an actuarial reduction of 3–5% per year. For someone retiring 7 years early, this could reduce their pension by 25–35%. Understanding whether early retirement is financially viable requires detailed modelling.

Calculate the true cost of early retirement
💰

Want to Top Up Your Pension

Most public sector schemes offer ways to buy additional pension. Whether this, AVCs, or a personal pension is the best use of your money depends on your age, tax rate, and retirement plans. The options have different costs and benefits.

Compare all top-up options
⚖

Going Through Divorce

Public sector DB pensions can be the most valuable asset in a divorce but are frequently undervalued by standard CETVs. The guaranteed income, inflation protection, and early retirement options can make these pensions worth significantly more than the CETV suggests.

Get an independent pension valuation
🔄

Leaving the Public Sector

If you are leaving for the private sector, understanding your deferred pension benefits, when they become payable, and how to build additional retirement savings to complement them is crucial for maintaining your retirement income trajectory.

Plan your pension transition carefully

Make the most of your public sector pension

Get matched with an FCA-regulated adviser who specialises in public sector pension schemes. Free matching, no obligation.

Get Pension Advice →
Costs Explained

How Much Does Public Sector Pension Advice Cost?

Public sector pension advice costs depend on the complexity of your situation and how many schemes are involved.

£500–£3,000
Initial Advice
One-off fee for a comprehensive public sector pension review covering multi-scheme benefit calculations, McCloud analysis, early retirement modelling, and personalised recommendations. Complex situations with multiple DB schemes may be higher.
0.5%–1%/year
Ongoing Management
Annual fee for ongoing monitoring and management of any private pension savings alongside your public sector scheme. The DB pension itself is managed by the scheme, but coordination with private savings, ISAs, and tax planning benefits from ongoing advice.
Worth knowing: Through PensionHelper, our matching service is free with no obligation. Public sector workers often find that understanding their pension properly gives them more confidence and may allow them to retire earlier than they thought possible – or with more income than they expected.
Simple Process

How It Works

1

Tell us about yourself

Quick questions about your pension situation. Done in 60 seconds.

2

Get matched with an adviser

We connect you with an FCA-regulated pension specialist suited to your needs.

3

Receive your advice

Your adviser reviews your situation and recommends the best course of action.

Real Reviews

What Our Customers Say

David H.
David H.
Westminster • Public Sector Pension Advice
★★★★★
“Civil service pension made clear”

With benefits across classic, classic plus, and alpha schemes after 28 years in the civil service, I was completely confused. The adviser produced a clear year-by-year projection showing exactly what I would receive and when. Retired last month with total confidence.

Sandra L.
Sandra L.
Bristol • Public Sector Pension Advice
★★★★★
“LGPS pension valued properly in divorce”

My ex-husband’s LGPS pension CETV was £180,000 but the independent report showed the true value was closer to £250,000 when accounting for the guaranteed inflation-linked income. That £70,000 difference made a huge impact on my settlement.

Mark T.
Mark T.
Liverpool • Public Sector Pension Advice
★★★★★
“McCloud analysis was essential”

The adviser showed that my Teachers’ Pension legacy benefits for the remedy period were worth £2,800 more per year than the reformed scheme benefits. That single decision will provide an extra £70,000+ over my retirement. Worth every penny of advice.

Claire J.
Claire J.
Edinburgh • Public Sector Pension Advice
★★★★★
“Early retirement was actually possible”

I assumed I would have to work until 67 but the adviser showed that retiring at 60 from my NHS pension, with my 1995 section paying full benefits, combined with a small ISA to bridge to State Pension, would give me a comfortable income. Life-changing.

Paul R.
Paul R.
Manchester • Public Sector Pension Advice
★★★★★
“Additional pension was great value”

The adviser compared buying additional LGPS pension, paying AVCs, and contributing to a SIPP. For my age and situation, the additional LGPS pension offered the best guaranteed return. I am now paying an extra £100 per month for £1,400 more per year in retirement.

Jenny K.
Jenny K.
Cardiff • Public Sector Pension Advice
★★★★★
“Smooth transition to private sector”

Leaving the civil service after 15 years meant my deferred pension was worth about £8,000 per year from age 67. The adviser helped me understand this value and set up a SIPP with my new employer to build additional savings. Clear plan for the future.

Learn More

Related Guides

Explore our guides for more information on public sector pension planning.

NHS Workers Pension Advice

Guidance for NHS pension scheme members

Teachers Pension Advice

Planning for teachers and education staff

Police Pension Advice

Specialist police pension guidance

Armed Forces Pension Advice

Military pension planning

Retirement Planning

Complete retirement planning guide

Pension Advice Guides

Our complete collection of pension resources
Got Questions?

Public Sector Pension Advice: Frequently Asked Questions

Yes, public sector defined benefit pensions are widely regarded as among the best pension arrangements available in the UK. They provide guaranteed income for life, are indexed to CPI inflation, have employer contribution rates of 16–31% (far above private sector norms), and are backed by the government. The guaranteed income alone is extremely difficult and expensive to replicate through private savings.
The capital value of a public sector pension is significantly higher than most people realise. A pension of £20,000 per year with CPI inflation protection for a 60-year-old has a capital value of approximately £500,000–£600,000 if you tried to replicate it through a private pension. The CETV provided by your scheme may be lower than this, which is why specialist valuation is sometimes needed.
Most public sector schemes allow retirement from age 55, but with an actuarial reduction for retiring before your normal pension age. The reduction is typically 3–5% per year of early retirement. For someone with a normal pension age of 67 retiring at 60, the reduction could be 21–35%. However, any legacy scheme benefits with an earlier pension age may be payable in full or with a smaller reduction.
The McCloud remedy gives eligible public sector workers who were in service before and after 1 April 2015 the right to choose whether their benefits for the 2015–2022 remedy period are calculated under their legacy scheme or the reformed scheme. This applies across all public sector schemes including NHS, Teachers, LGPS, Civil Service, Police, Fire, and Armed Forces.
Almost certainly not. Transferring a public sector DB pension to a private scheme means giving up guaranteed, inflation-linked income backed by the government. FCA-regulated advice is required for transfers over £30,000, and the FCA expects advisers to start from the assumption that a transfer is not suitable. Very few circumstances justify transferring out of a public sector scheme.
Most public sector schemes offer mechanisms to buy additional pension. The NHS allows additional pension purchase, Teachers’ has faster accrual options, and the LGPS allows Additional Pension Contributions (APCs). Whether these offer good value depends on your age, retirement plans, and alternative savings options. Younger members typically get better value due to more years of growth.
Employee contributions are tiered based on pensionable pay, with rates ranging from about 5% to 14% depending on the scheme and salary band. Employer contributions are set by scheme valuations and are much higher, ranging from 16.5% (LGPS) to 31% (Police). Contributions attract income tax relief at your marginal rate, making the effective cost lower than the headline rate.
If you leave after the qualifying period (usually 2 years), your pension benefits are preserved and payable at the scheme’s normal pension age. The preserved benefits are revalued each year (typically by CPI). You cannot usually transfer these benefits to a private pension, but they remain valuable. Many people underestimate the value of deferred public sector pension benefits.
Yes. Your State Pension is entirely separate from your public sector occupational pension. You receive both. However, your combined income from both pensions (plus any other income) is subject to income tax. The personal allowance is £12,570 tax-free, and many retired public sector workers find their combined income puts them in the basic rate tax band.
Most schemes provide a death-in-service lump sum (typically 2–3x salary) and a survivor’s pension for spouses and nominated partners (typically 37.5–50% of the member’s pension). Children’s pensions are also payable. The exact benefits depend on the specific scheme and section. Completing a nomination form is essential, especially for unmarried partners.
Public sector pensions in payment are increased annually in line with CPI (Consumer Prices Index). This means your pension broadly maintains its purchasing power over time. In a year with 5% CPI inflation, your pension increases by 5%. Over 25 years of retirement, this inflation protection is worth tens of thousands of pounds compared to a pension with no annual increase.
Yes. You can contribute to a personal pension, SIPP, or workplace pension alongside your public sector scheme. However, all pension contributions and benefits count towards the £60,000 annual allowance. For most public sector workers, the annual growth in their DB pension plus any private contributions must stay within this limit. An adviser can calculate your available allowance.
Additional Voluntary Contributions (AVCs) are extra pension contributions you can make on top of your standard public sector scheme contributions. They are usually invested in a defined contribution pot that sits alongside your DB pension. AVCs benefit from salary sacrifice (saving NI) in some schemes and can provide additional flexibility at retirement, including a tax-free lump sum.
Most public sector pension schemes provide annual benefit statements and online portals where you can check your accrued benefits. NHS staff can access the Total Reward Statement, Teachers can use the Teachers’ Pensions website, LGPS members can use their administering authority’s portal, and civil servants can check through MyCSP. These show your projected pension at normal retirement age.
Through PensionHelper, we match public sector workers with FCA-regulated advisers who specialise in DB pension schemes including NHS, Teachers’, LGPS, Civil Service, Police, and Armed Forces. They understand scheme-specific rules, McCloud remedy, and early retirement calculations. Our form takes 60 seconds, and our matching service is free with no obligation.

Ready to Understand Your Public Sector Pension?

It takes 60 seconds. Free, no obligation. Get matched with an FCA-regulated pension adviser today.

Get Pension Advice →

15,000+ people helped • Rated 4.9★ online • FCA-regulated advisers

Get Pension Advice, 60 Seconds →