Flexible Retirement

01 June 2023

Outdated and irrelevant NHS pension rules have finally been retired, meaning more flexibility for surgeons, allowing them to work for longer or come out of retirement to help reduce the burden on the NHS.

We are thrilled that the NHS has added new flexibilities to the almost-30-year-old section of the NHS Pension Scheme, not least because the old system financially penalised doctors for taking on extra hours or returning to work. This made it difficult for doctors and surgeons to help ease the mounting pressure on the NHS at a time of unprecedented waiting lists. Without a doubt, the system was broken, and patient care adversely affected.

THE CBS called for doctors to be given a tax holiday on pensions, which would allow them the flexibility needed to return to work. Our plea ran in the Mail on Sunday in June 2022, outlining the nonsense of the situation. Our President, Mark Henley, said:

“It is clear that many; if not most; senior medics would greatly welcome the opportunity to use their expertise to help tackle the NHS workforce crisis - however, the currently plea is economically unsound, as they could lose thousands of pounds by staying longer in work, taking extra shifts or agreeing to come out of retirement. The UK Government saw fit in 2021 to make MPs and the judiciary’s pensions fairer, yet failed extend this to the rest of the public sector.”

Under the old system, annual allowances were tapered, essentially a tax on pensions. This resulted in many top consultants and senior doctors unable to take on extra shifts to help without seeing a hit to their pensions. In a landscape in which the NHS needs doctors to work extra hours, or come out of retirement, it seemed absurd to expect them to absorb a financial penalty for doing so. Our doctors should not have to do financial calculations as part of their decision-making process. Furthermore, this process directly impacted the training of junior doctors as many senior doctors were forced to take early retirement or significantly reduce their working hours. This situation was unsustainable.

Thankfully, after much lobbying from many directions, the last budget saw significant adjustments which greatly affect the outdated rules, with Jeremy Hunt pledging to increase the pension annual tax-free allowance, reducing the potential impact of what for many amounted to a penalty. This not only allows doctors and surgeons out of retirement to address current NHS pressures, but also stops them being forced to retire early or reduce working hours to avoid the taper. These updated regulations provide greater flexibility for doctors and surgeons, allowing them to lend their expertise to the NHS without financial implications. Other changes include partial retirement, flexibility around how pensions are taken, and changes that will support work-life balance. More details can be found here.

Ultimately, these changes will help the NHS tackle the backlog of medical procedures and provide much-needed care to patients. However, it is important to remember that attracting and keeping talented medical professionals requires more than just updated pension regulations. The NHS must continue to create a robust and supportive environment that encourages both the intake and retention of its highly skilled workforce.

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