Teachers abandon 'phased retirement' over affordability fears

Ahead of the new school year – a traditionally busy time for teacher retirement planning – new data shows fewer UK educators are taking advantage of an option to gradually step back from the classroom due to concerns over affordability.

The number of UK teachers taking advantage of an option to ‘phase’ their way into retirement has more than halved over the past decade, new figures reveal, as research suggests teachers are being put off the option due to worries about affordability.

An FOI to the Department of Education, submitted by Wesleyan, shows that phased retirement has fallen 51% between 2014/15 and 2024/25 – from 955 in a year, to just 468.

This decline comes despite many teachers wanting to take a gentler path to retirement. A Wesleyan survey of 500 teachers found more than half (52%) would consider phased retirement — but concerns over affordability (43%) and a lack of flexible roles in schools (35%) are putting them off.

Phased retirement allows teachers aged between 55 and 75 to access part of their Teachers’ Pension Scheme pension while still working and continuing to build up pension benefits. To be eligible, they must reduce their pensionable earnings by at least 20%, either by reducing their teaching hours or moving into a role with less responsibility.

Despite the barriers, teachers widely recognise the benefits that it can offer. Just over two in five teachers polled by Wesleyan said they felt it helps ease into retirement while retaining a sense of routine and purpose (41%), while a similar proportion says it can help manage burnout risk (38%).

Steven Renfrew, Head of Education at Wesleyan, commented: "The start of a new school year is often when we get a spike in teachers thinking about their retirement options.

"Phased retirement can be win-win for schools and educators. It helps teachers start their retirement journey without having to leave the classroom altogether, while retaining their experience and skill – something that’s critical at a time when we’re already facing a national teacher shortage.

"But there are clearly barriers preventing wider use. Going forward schools might need to consider how they can create the flexibility phased retirement positions require – something that’s far easier said than done when there are already major workforce pressures.

"At the same time, teachers need to have support to fully understand what phased retirement might mean financially for them. Although it requires a reduction in pay, this might be more affordable than some initially think when other savings or investments are taken into account – and actually in their best interests if it supports their wider health and wellbeing. We’d encourage anyone interested in phased retirement to seek advice on if it could indeed work for them."

About the research

Figures based on a survey of 500 teachers across the UK, conducted between the 29th April and 1st May 2025 by OnePoll, on behalf of Wesleyan.

Freedom of information request submitted by Wesleyan to the Department of Education, received June 25th 2025. The full data is available on request.