Research into the impact of pensions tax in the NHS

pensions tax research report

NHS Employers has published independent research into the impact of pensions tax on the NHS and the NHS Pension Scheme.

The report was commissioned by NHS Employers and created by First Actuarial to carry out in light of the growing evidence to suggest that the changes in recent years to the annual and lifetime allowances are influencing the behaviour of NHS staff. The annual allowance, which limits the amount of tax relief on pension saving, has resulted in some members of the NHS Pension Scheme receiving large and unexpected tax bills. The results of an independent investigation show that many of those who expect to be affected by pensions tax issues in the future have taken or are considering taking action to try and avoid these issues. 

The purpose of the research was to find out:

  • how widespread pensions tax charges are in the NHS
  • the size of pensions tax charges faced by affected employees
  • any impact of these charges on the working behaviour of employees – and how this impacts the objectives of the NHS and on the NHS Pension Scheme.

The report provides:

  • an explanation of the issues around pensions tax with a focus on the NHS through case studies and examples
  • presentation and analysis of the results of an online survey which gathered the opinions and experiences of over 2,500 NHS employees, as well as their employers
  • conclusions and possible next steps in light of the findings.

In addition to the full report, you can read a two-page summary which highlights the key findings from the research. 

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