4 November 2026

Increasing an NHS Pension usually means one of four things. Buying Additional Pension, paying into Money Purchase AVCs, using ERRBO to retire up to three years early without reductions, or lifting your pensionable pay. However, each option works differently. And their tax implications are also worth checking before you commit to extra payments. This guide covers how you can increase your NHS pension safely and which option suits your goals best. If you’d rather hand over the process to experts, our specialist NHS Pension Scheme accountants can double-check your figures and protect your earnings. What are The Main Options for Increasing an NHS Pension? Here is the short version of the main routes for increasing an NHS pension. Option Who can use it What you get The catch Additional pension Active 2015 Scheme members Extra guaranteed yearly pension, bought in £250 steps Capped at £9,053 a year. Cost rises with age ERRBO Active 2015 Scheme members Retire 1 to 3 years early with no reduction, but not before 65 Extra contributions every scheme year. No salary sacrifice Money purchase AVC NHS Pension Scheme members A separate invested pot Value is not guaranteed Higher pensionable pay Everyone A bigger build-up each year Needs a pay rise or more pensionable hours 1. Buy Additional Pension Through the NHS One direct way of increasing an NHS Pension is to buy Additional Pension (AP). You choose how much extra yearly pension you want, in steps of £250. From 1 April 2026, the maximum is £9,053 a year. You can generally pay through: A one-off lump sum. Regular monthly instalments over an agreed period. It is best for you if you like knowing exactly what you will get, as the payouts are fully linked to inflation. You might want to know what it will cost. Well, it depends. The price is set using factors from the Government Actuary’s Department. Your age, the amount, how you pay and whether you add cover for dependants all matter. Younger usually means cheaper, because the pension is paid for longer. There are a few things worth knowing: You must be an active member of the 2015 Scheme, in good health and not absent from work. Dependants’ cover is optional. Every £250 of additional pension adds £93.75 a year to your partner’s survivor pension. It does not automatically increase your retirement lump sum. You can swap some pension for cash when you retire, though. Take your pension before normal pension age, and the additional pension is reduced too. For current costs and application details, visit the official NHSBSA Additional Pension guidance. 2. Consider an Early Retirement Reduction Buy Out (ERRBO) Planning to retire before your normal pension age? An Early Retirement Reduction Buy Out, commonly called ERRBO, may be worth exploring. If you are in the 2015 scheme, your normal retirement age matches your State Pension age. An ERRBO lets you buy out up to three years of that reduction. You pay for this via a fixed percentage of your gross salary. But keep in mind that it cannot lower your retirement age below 65. It’s also important to understand that ERRBO does not simply buy extra annual pension. Instead, it changes the early retirement reduction that would otherwise apply to the benefits covered by the agreement. The cost depends on your age and how many years you want the agreement to cover. Application deadlines and other conditions also apply. If you are considering early retirement, read the official NHSBSA ERRBO guidance before making a decision. 3. Consider Money Purchase Additional Voluntary Contributions (AVCs) Another option for increasing your retirement savings is a Money Purchase Additional Voluntary Contribution (AVC) arrangement. It will not raise your NHS pension itself, but it builds a separate pot. Plenty of people still treat it as part of their plan for increasing an NHS pension income. The money is invested, so the final value is not guaranteed. At retirement, you can take up to 25% as a tax free lump sum. The rest usually buys an extra pension. Or you may access it flexibly. NHS members can use Standard Life or Prudential, with special NHS terms and no commission charges. Tax relief is available on contributions up to 100% of your relevant UK earnings if you are under 75, though the maximum you can pay through payroll is limited to your net take-home pay. 4. Continue Building Pension Through Work The most organic way of increasing an NHS Pension is simply by boosting your pensionable pay through your day-to-day employment. Because the 2015 scheme builds up your pension based on a fraction (1/54th) of your pensionable earnings each year, taking home more pensionable pay automatically results in a bigger build-up for your retirement pot. To make this happen, you either need to secure a formal promotion, step up your clinical banding, or increase your standard pensionable hours. Just be aware that non-pensionable bonuses or standard ad-hoc overtime shifts won’t boost this calculation. Also, a higher salary could potentially slide you into a higher pension contribution tier or trigger an annual allowance tax trap. How Do You Decide Which Option Suits You For Increasing an NHS Pension? Start with three practical questions: Do you want extra guaranteed annual income? Look at additional pensions. Do you want a separate investment fund? Compare NHS AVCs. Is retiring before normal pension age the priority? Check whether ERRBO fits your plans. Then gather your pension statement, pension savings statements and any private pension contribution records. Comparing the cost, retirement date and tax position is more useful than choosing whichever option has the lowest monthly payment. As specialist accountants, CruseBurke can help with the accounting side of it and check how these options affect your annual allowances. How CruseBurke Can Help We are accountants, so we look at this from the tax side first. Our specialist NHS Pension Scheme accountants can check whether the extra pension you are considering pushes you close to the annual allowance, and how much carry