12 September 2025 |

    5 minutes

Retirement planning for portfolio careers

Female doctor sitting on a chair looking out the window

By Alec Collie

Head of Medical at Wesleyan Financial Services

Medics Financial planning Pensions
Female doctor sitting on a chair looking out the window

Introduction

Alec Collie, head of medical at Wesleyan Financial Services, considers why more medical professionals are enjoying the benefits of portfolio careers and the issues they may need to consider when planning their retirement.

Portfolio careers are an increasingly popular option in the healthcare sector, and the appeal is easy to understand.

Working in a range of roles can inject some variety, supporting engagement and professional development while helping prevent burnout and boosting earning potential. So, ever more medical professionals are choosing to take on additional responsibilities from teaching to research, clinical leadership, public health initiatives and freelance consultancy.

But this kind of career also comes with complexities, particularly when it comes to long-term financial planning.

Taking on more responsibilities can mean an increase in income, which can push you into a higher income tax band. That means paying a higher tax rate, but there are things you can do to manage your exposure, including:

A private pension

Money paid into a pension can be eligible for tax relief of up to 100%, making private pensions one of the most tax efficient ways to use income from your additional roles to plan and save for retirement.

However, depending on your circumstances, you may have to claim this yourself using a self-assessment tax form. And there is also an annual allowance – a limit on how much you can save into your pension each year and still receive tax relief.

Private pension schemes and the NHS Pension Scheme (NHSPS) have different ways of calculating pension contributions. With the NHPS, it’s not just about how much you contribute, but how much your pension pot has grown. So, it’s a good idea to get specialist advice to avoid accidentally breaching your annual allowance, which could land you with a tax bill.

The ISA option

Unlike traditional savings accounts, you can save up to £20,000 into an ISA every year and you don’t pay any tax on the income it generates.

There are two main types of ISA to consider here. A cash ISA is a savings account where you don't pay tax on any interest earned. This can be a good option for anyone who has moved up into the higher or additional rate tax band, because higher rate taxpayers can only earn £500 of interest tax-free, and additional rate taxpayers must pay tax on any savings interest.

Meanwhile, a stocks and shares ISA allows you to invest money in the market and avoid tax on any dividend payments or capital appreciation.

Moving money

If you are married or in a civil partnership, another way to avoid moving up a tax band can be to transfer assets to your partner. If your partner is in a lower tax band, it might be more tax-efficient for you to transfer some income-generating assets to them, because that income would be taxed at a lower rate. But tax bands aren’t the only things you need to think about if you have multiple streams of income.

Let’s look at some other issues that may come up.

Tax troubles

Every UK worker can earn a certain amount before they have to start paying Income Tax (unless your total taxable income is over £125,139). It’s called your Personal Allowance, and it is currently £12,570.

You only get one Personal Allowance and HMRC will usually allocate it to the job that pays the most, though if you have two jobs and neither pays more than £12,570, you can split your allowance between them.

It’s important that HMRC knows how many jobs you have so your Personal Allowance isn’t accidentally applied to more than one job. That could mean you underpay tax, which you will ultimately have to pay back – and you may have to pay a penalty too.

Becoming self-employed

Some people with portfolio careers will go from being fully employed to being wholly, or partly, self-employed, which means you have extra financial obligations.

If you are self-employed and earn or expect to earn more than £1,000 a year, you must:

  • Register as self-employed with HMRC
  • File a self-assessment tax return by January 31 each year
  • Pay your own tax and National Insurance

Any tax and National Insurance you ow must be paid by the end of the January following the tax year when you earned the money.  So, for the tax year that runs from 6 April 2025 to 5 April 2026, that means paying by 31 January 2027.

Fit for the future

This article is designed to highlight just some of the extra challenges that portfolio careers can bring. Anyone who has, or is considering, a portfolio career should consider speaking to a professional financial adviser who is experienced in things like the NHSPS. They will help review your finances to make sure that your finances are being managed in the most tax efficient way possible and support your long-term financial goals, including retirement. With that peace of mind, you can continue to enjoy all the benefits that a portfolio career can bring.

Find out more and read our recent report into portfolio careers.

ABOUT THE AUTHOR

Female doctor sitting on a chair looking out the window

By Alec Collie

Head of Medical at Wesleyan Financial Services

Alec joined Wesleyan in 2010 as a Regional Manager, opening up the lawyer region in Scotland and Northern Ireland. In 2014 he moved into the medical division, becoming Head of North Division in 2021 and taking control of all medical teams in 2022. Alec is responsible for the leadership, management and supervision of ten regional teams providing specialist advice to GPs and hospital doctors. He is a Chartered Financial Planner and Fellow of the Personal Finance Society.