Partial Retirement

Partial retirement is a flexible option that enables NHS Pension Scheme members to continue working while receiving some or all of their pension benefits. Members can apply for partial retirement twice and after that they will need to fully retire to access their remaining pension. 

You do not need to take a break or change jobs to take partial retirement. You can carry on working, but you need to reduce your pensionable pay by at least 10% for the first 12 months. Pay reductions must be agreed between you and your employer. 

For GPs, dental practitioners, ophthalmic and non-GP providers, a 10% reduction in commitment (level of engagement) is required. 

Key Points: 

• From 1 October 2023, changes to partial retirement will also include any 1995 Section benefits you have . 
• For most members, the minimum retirement age is 55, when you can take between 20% to 100% of your pension, without leaving your current job. 
• Some 1995 members with a protected minimum retirement age can take partial retirement from age 50. From age 50 to 55, you will need to take 100% of your pension benefits. 
• You don’t need to take a break or change jobs to take partial retirement. You can carry on working, but you need to reduce your pensionable pay by at least 10% for the first 12 months. 
• If you’re considering partial retirement the first step is to speak with your employer about your options. 

What happens to the rest of my pension? 

If you decide to withdraw less than 100% of your pension, the remaining amount will be left in your pension pot. You can then continue to pay in and you will be able to access the rest of your pension when you fully retire.

Only active members are eligible. Members of the 1995 section with a protected minimum pension age can apply from age 50, while other members can apply from age 55.

Eligible members who apply from age 50 should be aware they will need to take 100% of their pension if they retire before they are 55.

You need to reduce your actual pensionable pay by at least 10% for the first 12 months from your partial retirement. You must have a change to your terms and conditions of employment to be eligible to partially retire. This change in terms and conditions is to reference how you’ve reduced your pensionable pay by 10%.

For example, this could be reducing your hours, taking on a new role, or reducing your level of responsibility. This means you’ll need to agree a new working arrangement with your employer before you can apply for partial retirement.

What if I partially retire before my ‘normal’ pension age?

Your pension benefits will be reduced if you retire before your normal pension age, as you will be taking them early. How much they reduce depends on how much earlier you retire, however, the reduction is approximately five percent for every year the pension is taken early.

Your ‘normal’ pension age depends on which section of the pension scheme you are in.

When opting to take partial retirement, your chosen percentage (between 20% - 100%) can be applied either to one single scheme OR applied to all schemes in the NHS Pension Scheme. For either option you effectively have to take or use up your 1995/2008 Scheme benefits first, before you can take any of your 2015 Scheme benefits. See examples below: 

Single Scheme Example (Taking 80% of 1995 scheme only) 

Scenario: A member with benefits in the 1995/2008 Scheme and 2015 Scheme chooses to take 80% of their 1995 benefits only when partially retiring. 

An example of this calculation would be as follows: 

Basic 1995 Scheme benefits = £10,000 Pension & £30,000 Lump Sum 

£10,000 x 0.80 = £8,000 

Now that the pension at 80% of the 1995 pension has been calculated. To work out the Lump Sum you would multiply the 1995 pension amount by 3. 

£8,000 x 3 = £24,000 

Pension £8,000 

Lump Sum £24,000 

Overall Benefits Example (Taking 80% of overall benefits) 

Scenario: A member with benefits in the 1995/2008 Scheme and 2015 Scheme chooses to take 80% of their overall (1995/2008 & CARE) benefits when partially retiring. 

An example of this calculation would be as follows: 

1995 Scheme benefits = £10,000 Pension & £30,000 Lump Sum 

2015 Scheme benefits = £2,000 Pension 

Equates to a total pension pot of £12,000 

£12,000 x 0.80 = £9,600 

As £9,600 does not use up all the Basic 1995 Scheme pension, only benefits from the 1995 Scheme are used. So, there’s £400 of 1995 Scheme left and all £2,000 of the 2015 Scheme is remaining. 

To calculate the Lump Sum you would multiply the 1995 pension by 3. 

£9,600 x 3 = £28,800 

Pension £9,600 

Lump Sum £28,800 

Lump Sum 

If you have 1995 Section benefits, you are not able to take your lump sum from the 1995 Scheme separately from your pension. Taking partial retirement involves claiming a proportion of your pension (between 20% - 100%) and any lump sum associated with that pension. 

You will have the option to exchange some of your pension to provide for a lump sum (2008 Section/2015 Scheme) or an additional lump sum (1995 Section).

This calculator is for NHS officers, and not for GP or dental practitioners. 

The calculator is for illustration purposes only and will not give fully accurate figures. 

Open the NHS Partial Retirement Calculator

What you can use the calculator for: 

Members can use the partial retirement calculator to estimate their: 

• Lump sum and annual pension – calculate how much you could receive based on your chosen partial retirement amount 
• Pension growth - work out how your pension benefits will grow for every year you continue working as a member of the 2015 scheme 
• 2015 Remedy impact - calculate the value of your pension based on your chosen benefits between 1 April 2015 and 31 March 2022 (for members affected by the 2015 Remedy) 
• ‘Safe percentage’ - this is the percentage of your pension you could withdraw when taking partial retirement which would prevent a potential overpayment when making your McCloud choice. 
• ‘Abatement’ - understand the impact on your benefits caused by 'abatement' in the first 12 months after partial retirement. This refers to the effect on your pension when your pensionable pay after partial retirement increases to more than 90% of your previous pensionable pay (excluding national pay uplift). (Where this occurs, the pension in payment will be stopped.) 

Information you’ll need to use the calculator 

To get the most accurate results, you’ll need to have some information available before you start. 

You can find this information if you are an active member through our pensions portal 

The information you’ll need is: 

Personal: 

• date of birth 
• planned partial retirement date 
• date you joined the scheme 
• dates of any breaks in pensionable service 

Pay: 

• pensionable pay at retirement 
• new pensionable salary after you arrange to reduce it by at least 10% 
• new working pattern after the pensionable salary reduction 

Pension: 

• planned pension and lump sum amounts 
• membership details (1995 section, 2008 section, or both) 
• Special Class or Mental Health Officer status 
• value of any Additional Pension (not included until after McCloud decision has been made) 
• value of added years purchases (1995 and 2008) 

Complex situations 

The calculator is not suitable for members in the following groups: 

• members who are currently practitioners, or have historic practitioner membership (including GPs/Dental Practitioners and Ophthalmic Practitioners) 
• members of the 2008 Section 
• members who only have membership of the 2015 scheme 
• members who have had a break from the pension scheme at any time, lasting for 5 years or more 
• members of the 1995 section wanting to take partial retirement before age 55 
• members whose added years/additional pension contract payable dates are different from their normal retirement age 
• members who have mixed service between Mental Health Officer (MHO) and non-MHO 
• members who have transferred in from another public service pension scheme 
• members with over 40 years’ service before age 55 
• members working in more than one part-time role at the same time • members with Early Retirement Reduction Buy Out (ERRBO) agreements 
• members who received no pay for more than one month due to unpaid sick leave or unauthorised absence 

Find out more about getting an estimate.

The process is very similar to retiring fully. The main steps are: 

• Check you are eligible for partial retirement on this page. 
• Contact your HR team to discuss your intention to apply for partial retirement. This step is essential as you need to ensure that your employer can support a new working arrangement which will allow you to reduce your pensionable pay by at least 10%. 
• You should apply to the SPPA three to four months before you want to start taking benefits from the scheme. Your employer will provide your application form (as they have a section to complete too) 
• Your employer will submit the form to the SPPA once complete and you’ll receive a notification once it has been processed and your first payment date has been set. 
• Begin your new working arrangements with your pension paid monthly by the SPPA. 

You may wish to seek guidance from a financial advisor before you begin the partial retirement process. It’s also important to consider the tax implications as pension is classed as income and so is taxed.