NHS retirees are eager to learn how the retire-and-return program operates

With a 300 percent increase in the number of people retiring and then rejoining the NHS, the plan to prevent experienced employees from leaving the health service has proven successful

New figures show that NHS employees are opting to return to work while still receiving their pension under a retention program for experienced workers that has tripled in just four years.

According to Freedom of Information (FOI) data that wealth manager Quilter obtained from the NHS Business Services Authority, there has been a significant change in the retirement and pension-taking habits of NHS employees.

The number of so-called retire-and-return cases has increased by over 300 percent in just four years, from 4,697 in 2020 - 2021 to 18,725 in 20232024the highest number ever recordeddemonstrating the strategy's effectiveness in keeping senior NHS employees who wish to retire early in the workforce.

During this spike, a rule change was made in April 2023 that, for the first time, permitted members of the Health Service Pension Scheme 1995 Section to retire, take their pension, and then return to the NHS workforce and pension scheme (2015 Section) after a 24-hour break. This change allowed them to increase their pension while drawing from it.

A limitation temporarily lifted during the pandemic, the 16-hour work limit was also permanently eliminated by the reform. 1995 Section rules, which were in effect until April 1, 2023, restricted members to working 16 hours per week during the first month following retirement in order to protect their pension payments.

The retire-and-return program's enrollment rate for 2024 - 2025 is down to 12,597, according to preliminary data, but the overall trend is still sharply rising. The rule change's immediate effects were demonstrated in 2023 - 2024, when year-over-year growth peaked at +106 percent.

According to Graham Crossley, NHS pensions specialist at Quilter, "This data demonstrates the extent to which NHS employees are willing to be flexible. Partial and retire-and-return plans are essential for keeping on board seasoned nurses and clinicians, but they also introduce complications.

"Inadequate guidance puts employees at risk of making choices that could impact their long-term financial stability. To prevent unforeseen consequences, anyone thinking about these options should consult an expert.

According to separate FOI data from the previous year, over 209,000 members of the NHS pension scheme might not be receiving their monthly payments from the 1995 Section. Many people have yet to claim their benefits even after reaching normal pension age; 143,632 are 60 years of age or older, and 65,921 are 55 years of age or older. Because of the 1995 Section, there is usually a loss of payments if a claim is delayed.

We examine the process of locating lost pensions in a different article.

The NHS retire-and-return program is being used by whom?

More than 90 percent of retire-and-return cases are handled by nurses and a group of NHS employees known as officers alone. The numbers indicate that the program was adopted in 2023 - 2024 alone.

Hospital doctors: 664 cases; special and non-special class nurses: 8,936 cases (48 percent of the total); officers: 8,925 cases; and allied health professionals, such as physiotherapists and radiologists, as well as other non-medical, non-nursing clinical roles, are usually employed by officers in managerial and administrative positions like finance, human resources, and operational managers.

Nearly half (47 percent) of all retire-and-return cases are among people aged 60 to 64, with those aged 55 to 59 accounting for 36% of the total.

Retirement to a certain extent.

Since the 1995 Section of the NHS pension became available in October 2023, a growing number of NHS employees have also chosen to take partial retirement.

If they reduce pensionable pay by 10%, employees can use this route to draw 20% to 100% of their pension while still working and without having to take a break or take time off like they would with retire-and-return. The FOI displayed:

In contrast, redundancy-related pension awards are still uncommon, with only 154 cases in 2023 - 2024. The number of partial retirements recorded by Q3 2025 Uptake more than quadrupled in a single year, from 2,716 in Q4 2023 to 12,785 across Q2 and Q3 2025 combined. More than half (53 percent) of partial retirees are between the ages of 60 and 64, while 35% are between the ages of 55 and 59.

These numbers highlight the effects of intentional policy changes meant to address the labor shortage. According to Crossley, the NHS pension regulations were strict prior to 2020: retired members of the 1995 Section were not eligible for partial retirement and could not re-join the scheme.

In 2023, permanent changes were made possible by temporary COVID-19 easements in 2020, ushering in a new era of retirement flexibility.

How the NHS's retire-and-return program operates.

The NHS retire-and-return program enables employees to retire, receive their full pension, take a brief 24-hour break, and then return to work to continue accruing future pension benefits.

Re-entering the NHS does not result in a reduction or cessation of pension payments for those who choose to work as many hours as they like.

As long as you are under 75, you can rejoin the NHS pension plan even if you served for 45 years in the 1995 or 2008 Section.

People who are thinking about retiring and returning should talk to their line manager about the conditions under which they can do so after they retire. Your choice might be impacted by the possibility that you won't be able to return to the same position.

With partial retirement, you can continue to work and receive your pension without having to take a break or quit your job. Your pension can still be increased under the 2015 Plan.

For the first year, you will need to work with your employer to change your contract or your hours so that your "pensionable pay" (or your pensionable commitment, if you are a Practitioner) is lowered by 10%.