14 October 2025
NHS pension reforms spark 300% surge in retire-and-return as staff embrace flexibility
Freedom of information data obtained by Quilter from the NHS Business Services Authority shows a dramatic shift in retirement behaviour among NHS staff, driven by major pension reforms designed to retain experienced workers.
Retire-and-return cases have soared by more than 300% in four years, rising from 4,697 in 2020/21 to 18,725 in 2023/24 – the highest on record. This spike coincides with the April 2023 rule change, which for the first time 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 show a dip to 12,597, the overall trend remains sharply upward. Year-on-year growth peaked at +106% in 2023/24, reflecting the immediate impact of these changes.
The data reveals that officers and nurses dominate retire-and-return, accounting for over 90% of cases. In 2023/24 alone:
- Special and non-special class nurses: 8,936 cases (48% of the total)
- Officers: 8,925 cases
- Hospital doctors: 664 cases
Officers are typically staff in administrative and managerial roles (e.g., finance, HR, operational managers) as well as allied health professionals (physiotherapists, radiographers, etc.) and other non-medical, non-nursing clinical roles.
By age, 60–64-year-olds make up nearly half (47%) of all retire-and-return cases, with 55–59-year-olds contributing 36%.
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% of their pension while continuing to work, provided they reduce pensionable pay by 10%. The FOI shows:
- 30,903 partial retirements recorded by Q3 2025
- Uptake more than quadrupled in a year, from 2,716 in Q4 2023 to 12,785 across Q2 and Q3 2025 combined
- Over half (53%) of partial retirees are aged 60–64, while 35% are 55–59
By comparison, redundancy-related pension awards remain rare, with just 154 cases in 2023/24.
These figures underline the impact of deliberate policy reforms aimed at tackling workforce shortages. Before 2020, NHS pension rules were rigid: members of the 1995 Section who retired could not rejoin the scheme, and partial retirement was unavailable to them. Temporary COVID-19 easements in 2020 paved the way for permanent changes in 2023, creating a new era of retirement flexibility.
FOI data from last year revealed that over 209,000 NHS pension scheme members may be missing out on monthly payments from the 1995 section due to a lack of awareness. Despite reaching normal pension age, many have not claimed their benefits—143,632 are aged 60 or over, and 65,921 are 55 or older. Because the 1995 section lacks late retirement factors, delaying a claim typically results in lost payments.
Partial retirement or retire-and-rejoin require employer agreement, which can be a barrier. The Department for Health and Social Care should therefore help raise awareness and consider reforms to simplify access, helping ensure NHS staff don’t miss out on the pension they’ve earned. However, for those at threat of redundancy any service used to calculate pension benefit awards is then excluded from redundancy calculations.
Graham Crossley, NHS pensions specialist at Quilter, 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.”
“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.”
