Significant changes to NHS pension rules mean Members now have far greater flexibility when planning their transition to retirement. However, GP Partners more than anyone, need to consider their options carefully. Historically, GP partners could only access their NHS pension benefits through 24‑hour retirement, requiring a formal break in service to start drawing a pension. This is still a great option for Partners, but Single-hander GPs find this incredibly difficult to achieve and this is where Partial Retirement comes into its own.
Since 1 October 2023, Partial Retirement has been available to GPs across all NHS Pension Schemes, including the 1995 Section. This update allows additional ways for eligible GPs to ease into retirement, access part of their pension, and continue working without disrupting service delivery.
What is Partial Retirement?
Partial Retirement allows GPs aged 55 and over (or earlier where scheme-specific protections or ill-health retirement apply) to draw between 20% and 100% of their NHS pension benefits while continuing to work and build new pension benefits.
To do so, GPs must reduce their pensionable NHS commitment by at least 10% for 12 months. There is no requirement to take a break in service, but it is important to be able to evidence the 10% reduction. Once partially retired, members can continue accruing benefits in the 2015 NHS Pension Scheme, making this a flexible and attractive option for many GP partners.
Eligibility criteria for Partial Retirement
To take Partial Retirement, members must meet the following core conditions:
1. Minimum Pension Age
You must have reached the minimum pension age for your scheme:
1995 Section
- Age 50 if joined before 1 April 2006 (subject to no disqualifying break and actuarial reduction where applicable)
- Age 55 if joined after 1 April 2026
2008 Section and 2015 Scheme
- Age 55
2. Reduction in pensionable commitment
You must reduce pensionable pay or NHS commitment by at least 10% for the first 12 months following Partial Retirement.
- For GP partners, this typically means reducing NHS clinical sessions by at least 10% and you may need to evidence this.
- If you do not wish to reduce your workload then 24 Hour Retirement remains the preferred option.
How Partial Retirement works in practice
- Members can draw down 20% to 100% of their pension benefits.
- Partial Retirement can be taken up to two times during a career.
- Pension accrual in the 2015 Scheme continues after Partial Retirement.
- A formal application is required, usually involving a Partial Retirement Supplementary Form and an AW8 form completed via PCSE, payroll, or HR.
- Practices must update contracts or working arrangements to reflect the required pensionable reduction.
Benefits of Partial Retirement for GPs and Practices
- Financial flexibility
24 Hour Retirement and Partial Retirement provides immediate access to pension income while allowing continued earnings. This can be particularly valuable given rising living costs and increasing pension tax complexity.
- Retention of experienced GPs
Practices can retain senior clinicians at a time of national workforce shortages, preserving leadership capacity and continuity of patient care.
- Continued pension growth
GPs can keep contributing to the 2015 Scheme, growing their overall NHS pension entitlement even after accessing benefits.
Partial Retirement vs 24 Hour Retirement
| Feature | Partial Retirement | 24 Hour Retirement |
| Break in service required | No | Yes – minimum 24 hours |
| Continue in same job/role | Usually yes, subject to revised contractual or partnership terms | Not guaranteed, but not an issue in stable partnerships |
| Pension drawdown flexibility | 20–100% | 100% |
| Continue accruing 2015 Scheme benefits | Yes | Yes (after rejoining) |
| Pensionable pay reduction required | 10% for 12 months | No restriction |
Implications for GP Partners and Practices
For GP Partners
- Partnership agreements may need updating to reflect reduced sessions.
- Partial pension drawdown can interact with Annual Allowance and Lifetime Allowance replacement rules.
- Cashflow and income planning are essential when reducing working commitments.
For Practices
- Forward planning is required to manage reduced clinical capacity.
- Staffing models may need adjustment to maintain service levels.
- Profit-sharing arrangements should be reviewed carefully.
Key considerations before applying
Generally 24 Hour Retirement is still the preferred option for GP Partners. Before proceeding with either, GPs should consider:
Pension tax implications
Partial Retirement can affect:
- Annual Allowance usage
- Carry forward availability
- Future pension growth projections
McCloud Remedy adjustments
Pension figures may still be subject to retrospective recalculation, which could alter expected outcomes.
Partnership profits and drawings
Reduced sessions may impact profit shares and drawings. Detailed modelling can help avoid unexpected cashflow issues.
Long‑term workforce planning
Partial Retirement can improve work‑life balance and extend careers, but arrangements must align with practice needs.
How Xeinadin can help
Our specialist healthcare accountants support GP partners and practices by:
- Modelling retirement scenarios, including Partial Retirement vs 24 Hour Retirement.
- Forecasting pension growth, Annual Allowance exposure, and tax liabilities.
- Advising on partner contracts, session reductions, and profit share implications.
- Coordinating with financial advisers to align pension drawdown with wider financial goals.
- Helping practices plan staffing and financial impact with confidence.
About the author
Natalie Sherwood
Natalie has specialised in the Healthcare industry for over 10 years with more than 25 years’ experience in personal tax. She is the trusted advisor to many of Xeinadin’s GP and Medical clients, supporting them with tax matters (including McCloud remedy considerations and Annual Allowance tax charges) and other complex issues at every step of their financial journey.
Connect with the author on LinkedIn: Natalie Sherwood | LinkedIn
Contact us
If you are considering Partial Retirement or would like tailored advice, our team is here to help you make informed, practical decisions.
