The number of NHS workers claiming their pension benefits hit an all-time high in April 2022, which Quilter said suggests more people are deciding to retire .
According to a freedom of information request by Quilter, during April, 8,902 pension awards were made compared with 6,932 in April 2021, a year-on-year increase of 28 per cent.
While there are a number of reasons that someone would be awarded their pension benefits, Quilter said the most common is that they are retiring.
It described this data as “a worrying trend” emerging over the last four months of increasing year-on-year numbers.
Quilter NHS pension specialist, Graham Crossley, said: “Although our data does not delve into the specific reasons for the exodus from the NHS, we are hearing that healthcare workers are simply exhausted, feel undervalued and want out of the NHS for a better quality of life.
“It has been said that chronic workforce shortages are seriously undermining efforts to recover from the pandemic. The situation could become significantly worse if the calls to address issues with NHS pensions go unheeded.”
The increased number of retirements piles pressure on the NHS as it emerges from the pandemic.
Quilter said it was “specifically concerned” there are a number of issues that could lead to even more pressures on the NHS workforce, unless the government takes steps to resolve them.
“For instance, paying annual allowance charges because of inflation will be the 'straw that breaks the camel’s back' for many senior healthcare workers and we could see significant upward trends in the number of those members leaving the NHS,” it said.
The number of NHS members being awarded their pension benefits has steadily increased this year so far.
There have been the following increases during these periods:
- Jan 21 (4,538) to Jan 22 (4,698) - 3.5 per cent
- Feb 21 (3,147) to Feb 22 (3,386) - 7.6 per cent
- Mar 21 (3,300) to Mar 22 (3,837) -16.3 per cent
- Apr 21 (6,932) to Apr 22 (8,902) - 28.4 per cent
Crossley said: “We are already seeing the upward trends in the number of members retiring early or retiring at 60, when once they might have considered continuing to work past their original normal retirement age. The perverse rules, such as the upcoming disastrous tax bills due to inflation, serve to hasten decisions to leave the NHS.
“The whole taxation system needs careful review by both HMRC and the DHSC but, at the very least, there are two issues that can be quickly resolved.
“The upcoming end of the suspension of abatement rules needs to be extended indefinitely and s235(3) Finance Act 2004 needs to be amended so that annual allowance only measures growth above inflation, as intended. This will help to ensure the NHS can tackle the growing backlog.”
Quilter said this is not restricted to higher earners and argued that the problem may get even worse when the expiry of Coronavirus Act powers risks triggering thousands of nurses and doctors to leave the NHS to avoid a financial penalty.
Earlier this year, the government extended its relaxation of pension rules by seven months for NHS staff returning to work so they are not hit by reduced pension payments.
