CARE (Career Average Revalued Earnings)
A type of defined benefit pension where each year's pension is based on that year's pay, revalued annually until retirement.
In a CARE scheme, each year of service earns you a slice of pension based on what you actually earned that year (not your final salary). Each slice is then revalued — typically by CPI or CPI + a fixed percentage — every year until you retire, so earlier slices grow over time.
All major UK public sector schemes reformed to CARE from 2014-2015: NHS 2015 (1/54, CPI+1.5%), TPS 2015 (1/57, CPI+1.6%), LGPS 2014 (1/49, CPI), civil service alpha (2.32%, CPI+1.5%). CARE is generally less generous than final salary for people whose pay rises significantly late in their career, but more equitable for those whose pay peaks mid-career.
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.