A record number of NHS staff are retiring and returning to work within days under a generous “retire-and-return” pension scheme, following sweeping reforms to the NHS Pension Scheme. The changes, introduced in 2023, have made it easier for healthcare professionals to take their full pension and rejoin the workforce almost immediately — a move aimed at tackling severe staff shortages and reducing record waiting lists.
According to data obtained through a Freedom of Information request by wealth management firm Quilter, the number of NHS employees who retired and returned to work jumped by more than 300% — from 4,697 in 2020–21 to a record 18,725 in 2023–24. Although the figure eased slightly to 12,597 in 2024–25, it still represents a significant rise compared to pre-reform levels.
The new rules allow staff to draw their full pension and rejoin the NHS Pension Scheme (2015 section) to continue building benefits. The Department of Health and Social Care also permanently removed the restrictive 16-hour rule, which previously limited how many hours retirees could work in their first month back.
Nurses and Officers Lead the Return
The data shows that around 90% of returning NHS workers are nurses and officers. Nearly 9,000 rejoined the health service after drawing their pensions in 2023–24, compared to just 664 doctors. The figures highlight how the flexibility of the pension reforms has proved vital in retaining experienced frontline staff at a time when the NHS faces ongoing workforce shortages.
Experts Warn of Public–Private Pension Gap
Neil Record, former Bank of England economist, described the NHS “retire and rejoin” system as evidence of the “yawning gap between public and private pension provision.” He noted that private sector retirees typically face stricter rules or smaller returns, with less generous benefits than those available under public sector schemes.
Graham Crossley, NHS pensions specialist at Quilter, said the data revealed “how much appetite there is for flexibility among NHS staff.” He added that while retire-and-return and partial retirement schemes are essential to retain skilled staff, they also “add complexity” that could affect long-term financial outcomes if not properly managed.
Hunt’s 2023 Reforms Paved the Way
The surge followed the 2023 reforms announced by then-Chancellor Sir Jeremy Hunt, which included abolishing the lifetime allowance — a cap on total pension savings. The measure was introduced after many senior doctors began leaving the NHS early to avoid tax penalties for exceeding the limit.
The reforms also allowed members of the 1995 NHS pension scheme to rejoin the 2015 section upon returning to work. Before this change, returning staff had to contribute to less generous alternatives like the National Employment Savings Trust (Nest) or opt out of further pension contributions entirely.
Why the Pension Changes Matter
The NHS Pension Scheme remains one of the most valuable public sector benefits, offering a Defined Benefit structure that guarantees a retirement income for life, based on earnings. By contrast, most private sector workers depend on Defined Contribution plans, where retirement income fluctuates with investment performance.
Analysts say the retire-and-return model has helped the NHS retain critical staff and experience amid a workforce crisis, but also warned that over-reliance on rehires could obscure deeper recruitment and retention challenges.
NHS Workforce Pressures
The reforms come amid record NHS waiting lists — topping 7.5 million cases in 2024 — and a persistent shortage of nurses and clinicians. The UK government has increasingly leaned on pension flexibility and re-employment options to stabilize the workforce, while unions continue to call for better pay and working conditions to reduce long-term turnover.
