NHS pension reform boosted doctor retention by nearly 4%, study finds

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By Claudia Tanner

The 2015 NHS pension reform significantly increased the number of senior doctors working in England's health service, a new study has revealed.

Researchers found that the move increased the number of NHS-employed mid-career doctors by just under 4% four years after its implementation by early 2021. This equates to an estimated 666 additional full-time consultants.

That’s according to research conducted by economists from Imperial College London, the Institute for Fiscal Studies, Monash University and CEPR.

The 2015 reform moved all public sector employees from a final salary defined benefit pension to a career average scheme. Under the old system, only your final three years' salary mattered. Under the new system every year you work now counts more.

The researchers explain that working more in the NHS increases pension value by 81% more under the new pension plan than under the old plan – which they describe as “a large increase in financial incentives”.