How to Manage Retirement for Doctors

From drafting handovers to pension schemes... There are numerous things that healthcare employers need to consider when managing retirements.

When a doctor retires from your GP or pharmacy business, you should aim for a smooth departure. One wrong move and you could end up terminating contracts illegally, making financial losses, and causing business disruptions.

For further advice, contact one of our expert HR advisors free of charge today. Now, let’s look at how to manage retirement for doctors within your healthcare business:

Why do doctors retire?

Just like regular employees, doctors will reach a point in their life where they’ll consider . It could relate to age, illness, disability, or even personal preference.

However, in the medical world, retirement isn’t as straightforward as leaving one’s job. It involves complex handovers, detailed patient reassignments, and substantial skills gaps. Let’s look at common reasons behind why doctors retire:

Staff wellbeing: Around 30% of NHS workers are aged 50 and above. When you get to retirement age, doctors could already suffer from age-related health problems. This might occur from natural aging, medical conditions, or even from vicarious trauma.

Work-life balance: The General Medical Council (GMC) found that UK doctors experience high workloads, low professional satisfaction, and poor work-life balance. They often suffer with separating their personal and professional life.

: According to the British Medical Journal (BMJ), the number of GPs and doctors taking early retirement has increased by 9%+ per year since 2008. Changes to pension schemes have left doctors fearing impacts to their pension contributions – resulting in their decision to retire early.

Carers’ responsibilities: The Nuffield Trust found that 32% of all NHS staff have caring responsibilities. At retirement age, doctors may have established such duties, i.e., for their partner or grandchildren. It’s often the main reason behind their retirement choice.

Work pressures: The British Medical Association (BMA) found that there were 1,226 fewer full-time GPs in November 2024 compared to September of the same year. Labour shortages, intense workloads, even poor leadership can all become reasons behind doctors choosing to retire.

What age do doctors retire at?

In the UK, doctors can retire at 65 years old and receive their full pension (under the Pension Act 2008). However, the Royal College of General Practitioners (RCGP) published a 2022 ‘Fit for the Future’ report where they found most GPs approached retirement at 60.

It’s important to note that employers cannot force doctors into retirement due to their age. Age is a protected characteristic under the Equality Act 2010. Any unfavourable treatment related to their age could result in discrimination claims.

If you’re concerned about a doctor’s medical competency, you should conduct a capability procedure. This will highlight whether they’re medically capable of working or not.

What is the average pension for a doctor in the UK?

The average pension amount for UK doctors is based on their role, service length, and salary. It will also depend on whether they’ll receive a workplace pension or one through the NHS pension scheme. Pensions for NHS doctors is calculated like this:

Tier	Pensionable earnings (to the nearest £)	Contribution rate (from 1 Apr 2024)	Employer’s contribution
1	£0 to £13,259	5.2%	23.7%
2	£13,260 to £26,831	6.5%	23.7%
3	£26,832 to £32,691	8.3%	23.7%
4	£32,692 to £49,078	9.8%	23.7%
5	£49,079 to £62,924	10.7%	23.7%
6	£62,925 and above	12.5%	23.7%

How to manage retirement for doctors

Working as a doctor involves high-value work, medical expertise, and proficient care. From GPs to surgeons, if your doctors are thinking about retirement, make sure you follow the best steps to smooth their departure from the business.

Let’s look at how employers should manage retirements for their doctors:

Create a handover procedure

Once you’ve received a retirement request from your doctors, you’ll need to think about how to manage their decision whilst minimising business disruption.

Creating a handover procedure will help manage both exiting and existing staff. Handovers will highlight who will take over your departing doctor’s duties and patient care.

Manage clinical records appropriately

If you run an independent GP practice, you’ll need to manage clinical records that were under your retiring doctor’s care. This should be based on the Records Management Code of Practice (2022), relevant data protection laws, and advice from the General Medical Council (GMC).

If another doctor is set to take over clinical responsibilities for a patient, you’ll need to pass their records over with the patient’s permission. This includes medical records, as well as any reports related to their care.

Deal with pension schemes

If your business needs to pay into a doctor’s pension scheme, make sure the calculations are accurate. It’s best to hire a financial advisor who specialises in retirement planning or working with doctors.

With their professional guidance, you’ll benefit from legislative, informed, and expert advice on managing pensions for high-salary employees. Not only does this lead to a smooth departure, but it also diminished any risk of underpaying pensions.

Offer post-retirement voluntary work

In some cases, doctors may not anticipate what retirement actually entails. If they’re not ready to stop working completely, why not offer them part-time work to ease the process?

Employers can also offer them post-retirement voluntary work, like clinical work or mentoring. Make sure any paid work is contractually documented, as it could affect their pension contributions.

Under UK law, doctors must hold both a GMC registration and licence to practice medicine. If your doctors choose to return after retirement, they must still own these before working again.

Get expert advice on managing retirement for doctors with Peninsula

In the medical world, retirement isn’t as straightforward as leaving the business for good. Employers need to ensure they take the best steps towards managing their retirement within causing disruptions to their business.

Peninsula offers expert advice on managing retirement for doctors. Our 24/7 HR advice is available 365 days a year. Want to find out more? Book a free chat with one of our HR consultants. For further information, call 0800 051 3685.