Is the Police Pension
Scheme Worth It?
A plain-English, data-driven analysis of whether the UK Police Pension Scheme represents good long-term value — and what officers should consider before making decisions.
Trust Notice: Independent financial explanation. Not regulated financial advice. Not affiliated with any police force or pension administrator.
Executive Summary
The UK Police Pension Scheme is widely regarded as one of the strongest defined benefit pension schemes remaining in the public sector.
For most officers, remaining in the scheme provides significantly greater long-term retirement security than typical private sector alternatives.
Value Drivers
- Guaranteed Income: Secure payments for life.
- Inflation Protected: Uprated annually via CPI.
- High Contribution: Employer rates far exceed private sector.
Worth Factors
- Length of service & Career plans.
- Contribution affordability.
- Retirement age expectations.
What Type of Pension Is the Police Pension?
The current 2015 Police Pension Scheme is a CARE (Career Average Revalued Earnings) defined benefit scheme.
Based on career-average earnings, not final salary.
It builds at a fixed accrual rate and is revalued each year.
Older officers may have service in the 1987 Final Salary Scheme, 2006 Scheme, or 2015 CARE Scheme. All are defined benefit schemes.
This is fundamentally different from private sector pensions, which are typically defined contribution schemes where retirement income depends entirely on investment performance.
Why the Police Pension Is Often Considered Strong
Guaranteed Income for Life
The scheme pays a secure, inflation-linked pension until death. There is no investment risk borne by the officer.
Private Pension Contrast:
In private pensions, income depends on market performance, fund charges, drawdown decisions, and longevity risk. The police scheme removes these risks.
Employer Contribution Level
Police employer contributions are significantly higher than typical private sector contributions. In many cases, employer contribution rates exceed 20% of salary.
Market context: In private sector schemes, employer contributions are often between 3% and 8%. This is a major factor in overall value.
Inflation Protection
Police pensions are uprated annually in line with CPI. This protects retirement income from erosion. Private drawdown pensions do not automatically adjust for inflation.
Survivor Benefits
The scheme provides comprehensive protection for families:
These benefits are often expensive to replicate privately.
What Are the Contribution Costs?
Officer contribution rates vary depending on salary band. Higher earners contribute a larger percentage.
For many officers, contributions range approximately between 12% and 13% of pensionable pay. This is significantly higher than standard auto-enrolment contributions in the private sector.
The Trade-off
Higher monthly deductions
In exchange for guaranteed lifetime income
Police Pension vs Private Sector Pension
Standard Private Role
- Pension is defined contribution.
- Retirement income depends on investment returns.
- Longevity risk sits with the individual.
- There is no guaranteed income floor.
The Police Pension
- Defined benefit arrangement.
- State-backed infrastructure.
- Predictable retirement income.
- Risk transfer away from the officer.
For individuals without access to high employer contribution rates or sophisticated long-term investment strategies, the police pension is typically more stable and predictable. Note: Defined contribution schemes can outperform defined benefit schemes in high-growth investment environments, but they carry risk.
Situations Where Officers Question Value
Some officers question the scheme due to high contribution percentages, planning to leave policing early, financial pressure, or uncertainty around the McCloud remedy.
Short Service
Short service periods may reduce perceived value compared to full-career accrual.
Deferred Benefits
Even deferred pensions retain defined benefit characteristics and do not lose what you have built.
Retirement Age Considerations
Normal Pension Age under the 2015 Scheme aligns with State Pension Age. Early retirement can result in actuarial reduction. Earlier schemes have different structures. Retirement timing significantly affects perceived “value”.
Decision Support
Pension Decision Quick Check
Related Analysis
Frequently Asked Questions
Is the police pension worth it compared to private sector?
For most officers, the police pension offers greater income security due to its defined benefit structure, inflation protection, and high employer contributions. Private pensions may offer flexibility but carry investment risk.
Can I opt out of the police pension scheme?
Yes, officers can opt out, but doing so means losing employer contributions and guaranteed defined benefit accrual. Decisions should be carefully considered.
What happens if I leave the police pension?
If you leave policing, your accrued pension becomes deferred and remains inflation-linked until payable age.
Is the police pension better than the NHS pension?
Both are defined benefit public sector schemes. Value depends on accrual rate, retirement age and career length.
Do police pensions increase with inflation?
Yes. Police pensions are uprated annually in line with CPI.
Model Your Exact Pension
Use our Police Pension Calculator to estimate your annual income under the 1987, 2006 or 2015 scheme — including early retirement reductions and McCloud impact.
Final Assessment
For most officers who intend to build a medium-to-long career in policing, the police pension scheme provides strong structural value.
The combination of guaranteed lifetime income, inflation protection, employer contributions, and survivor protection means that it remains one of the more secure occupational pension arrangements available in the UK.
Individual circumstances matter. But for full-career service, the scheme is generally regarded as financially robust.