Firefighter Pension and State Pension: The Gap Explained

Two pensions, two ages

Your firefighter pension and the State Pension are separate. The firefighter pension is paid by your scheme, on your scheme’s ages: in FPS 2015 in England, Wales and Scotland, normal pension age is 60, with early retirement from 55 at a reduction; in the 1992 scheme it is 55, or 50 with 25 years’ service. The State Pension is paid by the Department for Work and Pensions from State Pension age, which depends on your date of birth, not your job.

The official firefighter pension website says State Pension age is different depending on when you were born and points to the government’s calculator. GOV.UK’s State Pension age page adds that it may be different to the age you can get a workplace or personal pension, and that the State Pension age is regularly reviewed, so the results of its tool may change in the future.

That is why a firefighter retiring at 55 to 60 usually has years when their only pension income is the firefighter pension. Planning for those years is the main financial task of early retirement, alongside the lump sum and tax. See firefighter pension retirement age and early retirement.

State Pension age: 66, 67 and 68

The government’s State Pension age timetable says the State Pension age for men and women will increase from 66 to 67 between 2026 and 2028 under the Pensions Act 2014. For people born between 6 April 1960 and 5 March 1961 it is between 66 years and one month and 66 years and eleven months, depending on the birth month, and for those born from 6 March 1961 to 5 April 1977 it is 67. Under the Pensions Act 2007, it is due to rise from 67 to 68 between 2044 and 2046, though the timetable notes this could change after a review and is not currently legislated to change.

The table below summarises the position. Use GOV.UK’s State Pension age calculator for your exact date, and expect it to be reviewed at least every five years.

For firefighters, the effect is direct: a member born in 1975 could retire at 55 in 2030, reach normal pension age at 60 in 2035, and reach State Pension age at 67 in 2042. The gap between 60 and State Pension age is seven years.

How much State Pension will you get?

GOV.UK says the full rate of the new State Pension is £241.30 a week, and that your amount could be different depending on whether you were contracted out before 2016, your number of National Insurance qualifying years, and whether you paid into the Additional State Pension before 2016. Over 52 weeks that is £12,547.60 a year. You normally need 35 qualifying years for the full rate, and if you were contracted out you will usually need more than 35 years.

The new State Pension increases each year by the highest of earnings growth, prices measured by CPI, or 2.5%. That means it is different from firefighter pensions, which increase by CPI each April. The best way to find out your own figure is a State Pension forecast from GOV.UK, which also shows your National Insurance record.

As you build a plan, treat the State Pension as an income that starts at a known age, with an amount to be checked. It is taxable, and it will be added to your firefighter pension income for tax. The pension calculator can help with the firefighter side, and the pay calculator shows the tax mechanics on earnings.

Contracting out: why the firefighter scheme matters for your State Pension

Until 5 April 2016, occupational schemes could contract out of the additional State Pension. The official firefighter website says the scheme was one that did, and that if you were a member between 6 April 1978 and 5 April 2016 you may have additional benefits payable by the scheme. While contracted out, you paid a lower rate of National Insurance and did not build that part of the State Pension.

This is why GOV.UK says contracted-out members will usually need more than 35 qualifying years for the full new State Pension, and why your forecast may show a lower starting amount than the headline figure. For service between 6 April 1978 and 5 April 1997, the scheme guarantees a minimum pension (the guaranteed minimum pension) at least equal to what you would have received under the State Second Pension. If you have one, part of your annual pension increase may be paid with your State Pension after State Pension age, but you still receive the full increase overall.

Check your State Pension forecast and your firefighter statements together. If the forecast shows a shortfall, ask the Department for Work and Pensions how to fill gaps, and ask your administrator whether a guaranteed minimum pension applies to you.

If you retire early: National Insurance gaps and voluntary contributions

The official FPS page notes that some 1992 scheme members who retire at 50 may not have paid full National Insurance contributions afterwards, which can affect the value of the State Pension, and that your State Pension forecast shows the effect. If you stop working at 50, 55 or 60, you will have no employment NI record until State Pension age unless you pay voluntary contributions or receive credits.

The official pages say that if you are not on track for the full State Pension you can top it up by making voluntary National Insurance contributions, and that delaying your State Pension can increase it. You can only fix some gaps within time limits, so check early. Deferring the State Pension increases the amount, which may suit someone who has other income and does not need it immediately.

Your NI record also depends on other work after leaving the fire service. A second career, part-time work or self-employment can add qualifying years. The guides on leaving the fire service and transfers cover related options.

Bridging the gap: what the firefighter scheme does and does not do

I could not find a State Pension bridging option in the firefighter scheme materials, meaning a temporary higher pension that reduces when State Pension starts. Some other pension schemes have one. Here your firefighter pension is paid at its normal rate from the date you draw it, and increases each April by CPI, and you plan your own bridge.

The options to consider include how much lump sum to take, since a lump sum can be used to fund the gap years but reduces annual pension permanently; when to draw each slice, since deferring the FPS 2015 slice avoids a reduction until State Pension age; part-time or second-career earnings; savings; and, in some cases, partial retirement, which lets you take pension from 55 while continuing to work and build a second pension.

Because these interact, model them together. The free lump sum calculator and the commutation guide show what a lump sum does to income, and the pension report can bring the pieces into one view.

A worked example: income before and after State Pension age

Use the 30-year, 3% revaluation FPS 2015 example from other guides: an unreduced pension of £32,162 a year at 60, of which a 25% lump sum exchange leaves £24,121 (and a £96,485 lump sum). Suppose the State Pension age is 67 and the full State Pension of £12,547.60 applies. These are invented assumptions for illustration and use the 2026/27 tax figures for England, Wales and Northern Ireland: personal allowance £12,570 and 20% basic rate on income within the basic band.

From 60 to 67, income is the firefighter pension alone, £24,121. Taxable income is £24,121 − £12,570 = £11,551, tax about £2,310, leaving about £21,811. At 67 the State Pension is added: total £36,668.60. Taxable income is £24,098.60, tax about £4,820, leaving about £31,849. So State Pension raises net income by about £10,038, less than the £12,548 gross because of extra tax. Scottish members face different income tax bands, so their figures differ.

The numbers show why the gap years matter: before State Pension, net income is about a third lower, so a household budget needs to work in both periods, or the lump sum may need to help fund the gap.

A planning checklist

Retirement planning around the State Pension is mostly about timing. This list turns the guide into actions.

1. Check your State Pension age and forecast on GOV.UK and note any gaps in your National Insurance record.
2. Ask your administrator for firefighter pension quotations at each age you might retire, with and without a lump sum.
3. List your income and spending year by year from your retirement date to State Pension age, and again after it.
4. Decide whether to draw legacy and FPS 2015 slices together or separately, considering reductions.
5. Ask whether you have a guaranteed minimum pension, and whether any NI top-up could be worthwhile.
6. Review the plan each year with your annual benefit statement.