Retire and Return for NHS dentists: navigating the financial and legal path to 24-hour retirement

For many dentists, retirement is no longer a single date — it’s a gradual transition towards more balance and reduced sessions. This is where Retire and Return (sometimes called ‘24-hour retirement’) enters the conversation. “Can I take my NHS Pension and carry on working?” is the question we’re asked most often. The answer is usually yes, but “Should I?” matters more.

Retire and Return can be an excellent planning opportunity, or an expensive mistake if used simply to access tax-free cash. The right decision depends on the NHS Pension rules, your wider financial position and, for practice owners, the legal and contractual framework surrounding your practice.

What is Retire and Return?

Retire and Return allows eligible NHS Pension Scheme members to retire, claim their benefits and return to NHS work. Since 2023, many can continue contributing to the 2015 Scheme while receiving their pension from earlier sections, making partial retirement more attractive. However, retiring from the Pension Scheme does not mean retiring from your practice. Those are separate considerations, addressed below.

Weighing up the decision

The appeal is obvious: access your pension, receive a tax-free lump sum, keep earning and reduce clinical commitments. But your NHS Pension is likely one of your most valuable assets: an index-linked income for life, often with dependants’ benefits.

Deciding when to draw those benefits deserves the same care as selling a practice or investing your life savings. Qualifying for Retire and Return is one thing; whether it improves your long-term position is another.

Financial planning tip: Being able to take your NHS Pension does not necessarily mean you should. The right retirement date depends on your wider financial circumstances, not simply your age or eligibility.

One size rarely fits all

Consider three dentists:

• Sarah is 57 and has worked four long clinical days for decades. She’d like Fridays back, her mortgage is repaid and her children are independent. Retire and Return could offer the flexibility she needs
• James wants to access his tax-free cash quickly, as colleagues have. On review, he doesn’t need it. Waiting may increase his benefits. Availability alone isn’t a reason to act
• Rachel owns a busy practice and plans to keep managing it after reducing clinical work. Pension planning is only part of her picture. Practice structure, NHS contracts, partnership documentation and succession all need considering

Financial planning tip: Do not consider your NHS Pension in isolation. Your other pensions, investments, practice value, future spending and plans for your family can all influence the right strategy.

Practice ownership adds another layer

For associates, Retire and Return is often straightforward. For practice owners, it’s more complex, with questions around:

• GDS or PDS contractual arrangements
• Sole-provider practices
• Partnership agreements
• Shareholder agreements
• Associate arrangements
• Succession planning
• Business continuity.

These issues don’t rule out Retire and Return, but they need early consideration. Coordinated advice can avoid costly missteps. The sections below explain the legal framework.

Two routes: full 24-hour retirement vs partial retirement

If you’re a practice owner considering Retire and Return, the route available to you will largely depend on the type of NHS contract you hold. There are two principal routes:

• Full 24-hour retirement: you retire from the NHS Pension Scheme, satisfy the minimum break in service (typically a weekend) and return to NHS work, triggering access to your benefits
• Partial retirement: you reduce pensionable earnings by at least 10% for a minimum of 12 months, drawing part of your pension without a full break. This is simpler contractually and particularly relevant for PDS holders.

GDS and PDS contracts: a critical distinction

If you hold a GDS contract, 24-hour retirement is achievable. The framework allows variations between individual and partnership arrangements, enabling the temporary transfer needed during your retirement.

If you hold a PDS Agreement, 24-hour retirement is not currently available. Entering the partnership arrangement would terminate the Agreement entirely. However, partial retirement remains available, and incorporation may offer an alternative, both covered below.

GDS contracts: the 24-hour retirement process

For GDS holders, 24-hour retirement works by temporarily transferring the contract to another party, typically an incoming partner, and then transferring it back on your return. This uses clause 292 (Individual to Partnership) and clause 299 (Partnership to Individual) variations. Each must be correctly drafted and timed, with the process reversed on return.

If retirement falls within a weekend when the practice is closed, no CQC registration change is required. If it occurs during opening hours, two CQC changes are needed — one on retirement, one on return — adding cost and complexity.

Each variation must be correctly drafted, timed and submitted with supporting documentation. Mistakes can cause delays, which is why professional support is essential.

PDS contracts: current position and alternatives

The NHS has confirmed that 24-hour retirement is not available under an unincorporated PDS Agreement. The partnership arrangement would terminate the Agreement. No 24-hour retirement under PDS has been completed to date.

Incorporation offers a possible alternative. Transferring the PDS contract to a limited company could allow 24-hour retirement without the contract returning to the NHS. This is an emerging area, and PDS holders are encouraged to raise it with the NHS.

Partial retirement: a simpler alternative

For dentists who cannot pursue 24-hour retirement, or who prefer a simpler route, partial retirement is an important alternative, particularly for PDS holders, though it’s also available to GDS holders.

• No break in service is required — you continue working throughout
• Requires a reduction in pensionable earnings of at least 10% for a minimum of 12 months
• Does not affect the PDS Agreement or GDS contract — no contractual variations are needed
• Confirm eligibility and plan your reduction in hours with the NHS Pensions team well in advance.

This is considerably simpler than full 24-hour retirement. There are no variations, partnership arrangements or CQC implications, making it practical for many dentists, particularly those with PDS contracts.

Timing matters

A common misconception is organising Retire and Return just weeks before taking your pension. The best outcomes begin months, sometimes more than a year, in advance.
Starting early allows time to:

• Understand your NHS Pension options and model different retirement dates
• Review your tax position and plan income efficiently
• Consider the impact on your practice and any succession planning
• Build additional pension benefits in the 2015 Scheme where appropriate
• Three months’ notice: the NHS requires a minimum of three months’ notice for the contractual variations. This is a firm requirement, not a guideline
• Weekend retirement window: ideally, arrange retirement over a weekend when the practice is closed (midnight Friday to midnight Sunday). This avoids CQC registration changes and simplifies the process.

Getting timing right affects cost, complexity and regulatory burden. This should form part of a broader strategy, perhaps reducing sessions gradually, maintaining ownership for a period and ensuring sustainable retirement income. Every dentist’s circumstances differ.

Questions worth asking before you decide

Before deciding, ask yourself:

• Why do I want to access my pension now? Do I need it, or simply like the idea, and what does retirement look like for me?
• Have I considered the long-term value of delaying, and how it might affect my future benefits?
• How will this affect my tax position, and what other pensions or investments do I have?
• What role will my practice play over the next five to 10 years, and are there contractual implications?
• Have my financial adviser and solicitor considered the plan together?

Financial planning tip: Taking your pension while continuing to work can change your tax position significantly. Consider the net outcome, not simply the additional income.

Final thoughts

Retire and Return is one of the most useful planning options for NHS dentists. Used well, it offers flexibility and a smoother transition towards retirement. But it isn’t a universal solution. The best outcomes come from looking at the bigger picture: your pension, practice, tax position, legal arrangements and long-term goals are all interconnected.

The key is to plan before you act. Early, coordinated financial and legal advice allows the different options to be considered together, so you can choose the route that best supports your practice, your finances and the retirement you want.

This article was written collaboratively by Bruna Ronzani, who advises on the legal and contractual aspects of NHS dental practices, and Martin Febery, Financial Adviser at Money4Dentists, who specialises in financial and pension planning.