There has been a "dramatic shift" in retirement behaviour among NHS staff, driven by major pension reforms designed to retain experienced workers, a freedom of information (FOI) request from Quilter has suggested.

The FOI request highlighted data from the NHS Business Services Authority, which revealed that retire-and-return cases have "soared" by more than 300 per cent in four years, rising from 4,697 in 2020/21 to 18,725 in 2023/24, the highest on record. 

Quilter pointed out that this spike coincides with the April 2023 rule change, which allowed members of the 1995 Section to retire, take their pension, and rejoin the NHS Pension Scheme (2015 Section) after a 24-hour break.

The reform also permanently removed the 16-hour work limit, a restriction that had been temporarily lifted during the pandemic.

Although provisional figures for 2024/25 showed a dip to 12,597, the overall trend remained "sharply upward", as year-on-year growth peaked at +106 per cent in 2023/24, reflecting the immediate impact of these changes.

Officers and nurses dominated retire-and-return, accounting for over 90 per cent of cases, with 9,936 cases involving special and non-specialist class nurses in 2023/24 (48 per cent of the total), alongside 8,925 cases involving officers, and 664 cases involving hospital doctors. 

Officers are typically staff in administrative and managerial roles, as well as allied health professionals (physiotherapists, radiographers, etc.) and other non-medical, non-nursing clinical roles.

In addition to this, Quilter found that older workers are more likely to take advantage of the scheme, revealing that 60–64-year-olds make up nearly half (47 per cent) of all retire-and-return cases, while 55–59-year-olds contribute 36 per cent.

Partial retirement is also gaining momentum since its introduction in October 2023, when the option was extended to the 1995 Section.

This flexibility allows staff to draw 20–100 per cent of their pension while continuing to work, provided they reduce pensionable pay by 10 per cent.

According to the FOI, there were 30,903 partial retirements recorded by Q3 2025, after uptake more than quadrupled in a year, from 2,716 in Q4 2023 to 12,785 across Q2 and Q3 2025 combined.

Older savers were again more likely to make use of this, as over half (53 per cent) of partial retirees are aged 60–64, while 35 per cent were 55–59.

However, redundancy-related pension awards remained rare, with just 154 cases in 2023/24.

Quilter highlighted the figures as evidence of the impact of deliberate policy reforms aimed at tackling workforce shortages. 

However, it suggested that more could still be done, suggesting that the Department for Health and Social Care should help raise awareness and consider reforms to simplify access, helping ensure NHS staff don’t miss out on the pension they’ve earned. 

Quilter NHS specialist, Graham Crossley, said: “This 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. 

"Without 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.”

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