Buy Out Explained

What is Buy Out?

Buy Out is an option that allows you to pay extra pension contributions to eliminate or reduce the standard reduction that would be applied to the career average part of your pension if you decide to retire before reaching your Normal Pension Age (NPA).

What is your Normal Pension Age for career average?

Your Normal Pension Age (NPA) for career average is either 65 or your State Pension Age (SPA), whichever of those is the later date). You can use the government's calculator to find out your SPA.

Who is eligible for Buy Out?

Any active member of the Teachers’ Pension Scheme who plans to retire before their NPA can opt for Buy Out.
The election must be made within the first six months of you entering the career average scheme.

More information about Buy Out and examples of how it works can be found on our factsheet (PDF, 67 KB).