Polling suggests some teachers are too worried about finances to consider phased retirement

The number of teachers using an option to ‘phase’ their way into retirement has more than halved over the past decade, according to Government figures.

The number of staff taking ‘phased’ retirement has fallen 51 per cent between 2014-15 and 2024-25 – from 955 in a year, to just 468, according to Department for Education (DfE) figures.

And polling suggests that affordability concerns could be behind the falling number.

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Phased retirement allows teachers to take up to 75 per cent of their pension benefits from the age of 55 while still working and paying into their pension.

Wesleyan Financial Services, which obtained the figures from the DfE via Freedom of Information request, also commissioned a survey of 500 teachers, which found that more than half (52 per cent) would consider phased retirement.

But concerns over affordability (43 per cent) and a lack of flexible roles in schools (35 per cent) were putting them off.

If you have qualified teacher status (QTS), you get a minimum starting salary of £31,650 as a primary or secondary school teacher in England.

Government figures show this rises to around £43,607 for a typical teacher within five years. This is slightly above the UK average salary, which is around £38,000.

To take phased retirement, teachers have to reduce their earnings by at least 20 per cent, which they can do by cutting their hours, or changing to a role that pays them less money

For example, someone who has worked in teaching for 30 years with an average salary of £40,000 could take a pension of £11,400 while still working.

However, not all schools will allow teachers to take this option, so some may need to look at a different employer to take it.

Steven Renfrew, head of education at Wesleyan, said that phased retirement could be a “win-win” for schools.

He added: “But there are clearly barriers preventing wider use. Going forward schools might need to consider how they can create the flexibility phased retirement positions require – something that’s far easier said than done when there are already major workforce pressures.

“At the same time, teachers need to have support to fully understand what phased retirement might mean financially for them.”

A Department for Education spokesperson said: “Teachers are at the heart of this government’s mission to break down barriers to opportunity, and a guaranteed income in retirement is one of the rewards teachers deserve. Our Teacher Pension Scheme is a key part of recruiting and retaining the best and brightest teachers.

“We’re already seeing thousands more teachers in secondary and special schools in England compared to last year, more people accepting teacher training places in STEM subjects this autumn and more teachers forecasted to stay in the profession.

“We are in full support of schools implementing a range of flexible working practices – including phased retirement. Phased retirement allows experienced teachers to stay in the profession for longer and is an option to help members manage their retirement how they see fit, but it is a matter for them and their employer to decide.”

How the TPS works

The teachers’ pension scheme (TPS) is a defined benefit (DB) pension scheme. This is different to the defined contribution (DC) pension schemes most private sector workers have.

With a regular DC pension, most workers save into their own retirement kitty and then draw cash from it retirement.

With a DB scheme, the employee has no savings pot. They are paying into a pension scheme to become a member of that scheme and receive a regular payout when they retire.

Under the TPS scheme, staff contribute a minimum of 7.4 per cent of their salary and schools contribute 28.6 per cent, which is used to fund the pensions of current retirees.

The employee builds up an entitlement for their retirement and this is usually worth 1/57 of their annual pensionable pay for each year they work.