NHS staff are choosing to return to work while still receiving their pension under a scheme to retain experienced workers that has seen take-up triple in just four years, according to new figures.<\/p>\n
The dramatic shift in pension <\/a>taking and retirement <\/a>behaviour among NHS staff is revealed in Freedom of information (FOI) data obtained by wealth manager Quilter from the NHS Business Services Authority.<\/p>\n <\/p>\n So-called \u2018retire-and-return\u2019 cases have soared by more than 300% in four years, rising from 4,697 in 2020\/21 to 18,725 in 2023\/24 \u2013 the highest on record \u2013 showing the success of the scheme to encourage senior NHS staff who want to retire early<\/a> not to leave the profession.<\/p>\n MoneyWeek<\/p>\n Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE<\/p>\n <\/p>\n \nGet 6 issues free\n<\/p>\n <\/a><\/p>\n Sign up to Money Morning<\/p>\n Don’t miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter<\/p>\n Don’t miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter<\/p>\n This spike coincides with an April 2023 rule change, which for the first time allowed members of the health service pension scheme 1995 Section to retire, take their pension, and rejoin the NHS workforce and pension scheme (2015 Section) after a 24-hour break, allowing them to boost their pension <\/a>while drawing from it.<\/p>\n The reform also permanently removed the 16-hour work limit, a restriction temporarily lifted during the pandemic. Up to 1 April 2023, 1995 Section rules limited members to working 16 hours a week in the first month after retirement to avoid their pension payments being affected.<\/p>\n Provisional figures for take up of the retire-and-return scheme for 2024\/25 show a dip to 12,597, but the overall trend remains sharply upward. Year-on-year growth peaked at +106% in 2023\/24, showing the immediate impact of the rule change.<\/p>\n Graham Crossley, NHS pensions specialist at Quilter, said: \u201cThis data shows just how much appetite there is for flexibility among NHS staff. Retire-and-return and partial retirement are proving vital for retaining experienced clinicians and nurses, but they also add complexity.<\/p>\n \u201cWithout proper guidance, staff risk making decisions that could affect their long-term financial security. Anyone considering these options should seek expert advice to avoid unintended consequences.\u201d<\/p>\n Separate FOI data from last year revealed more than 209,000 NHS pension scheme members may be missing out on monthly payments from the 1995 Section. Despite reaching normal pension age, many have not claimed their benefits \u2013 143,632 are aged 60 or over, and 65,921 are 55 or older. The nature of the 1995 Section means delaying a claim typically results in lost payments.<\/p>\n We look at how to find lost pensions<\/a> in a separate article.<\/p>\n Who is using the NHS retire-and-return scheme?<\/p>\n Nurses and a group of NHS staff known collectively as \u2018officers\u2019 dominate retire-and-return, accounting for over 90% of cases. In 2023\/24 alone the figures show take up of the scheme from:<\/p>\n Special and non-special class nurses: 8,936 cases (48% of the total)Officers: 8,925 casesHospital doctors: 664 cases<\/p>\n Officers are typically staff in administrative and managerial roles \u2013 such as finance, HR, operational managers \u2013 as well as allied health professionals, like physiotherapists and radiographers, and other non-medical, non-nursing clinical roles.<\/p>\n By age, 60 to 64 year olds make up nearly half (47%) of all retire-and-return cases, with 55 to 59 year olds contributing 36%.<\/p>\n