- Just 410 teachers took phased retirement in 2025/26
- Take up fell by 12% in the past year and 57% over the decade
- Financial pressures may make the required 20% reduction in earnings unaffordable for some teachers
- September’s 3.5% pay award provides an opportunity for teachers to review both their current income and retirement plans
The number of teachers taking phased retirement has more than halved over the past decade, raising concerns that schools could be missing an opportunity to retain experienced staff.
Just 410 teachers took phased retirement in 2025/26, according to Freedom of Information data obtained by Wesleyan from the Department for Education.
This was 12% lower than the 468 recorded in 2024/25 and a 57% fall from the 959 teachers who took phased retirement in 2015/16.
Phased retirement allows eligible members of the Teachers’ Pension Scheme (TPS) to access part of their pension while continuing to work and build further pension benefits.
Teachers using the option must reduce their pensionable earnings by at least 20% for a minimum of 12 months, either by working fewer hours or moving into a role with less responsibility.
The continuing decline could represent a missed opportunity for schools to retain the skills and experience of teachers who may no longer want, or feel able, to continue working full-time.
Alec Collie, Head of Education at Wesleyan, said:
“At a time when schools need to retain the knowledge and experience of established teachers, it is striking that the number choosing phased retirement has fallen by more than half in a decade.
“Phased retirement can provide a bridge between full-time teaching and retirement. It can allow teachers to reduce their workload while enabling schools to retain valuable skills and experience that might otherwise be lost.
“The figures do not tell us exactly why take-up has fallen. However, the requirement to reduce pensionable earnings by at least 20% may make the option financially difficult for some teachers. A lack of awareness or uncertainty about the effect on their income and pension benefits may also prevent people from considering it.”
Pay award puts teacher pensions in the spotlight
The figures come as teachers and school leaders in England receive a 3.5% pay award from September 2026.
While the immediate impact on take-home pay is likely to be the priority for many teachers, an increase in pensionable salary can also affect the pension benefits they build through the TPS.
For members building career average benefits, pension is added each year based on 1/57th of their pensionable earnings, before revaluation. This means an increase in pensionable pay can increase the pension they build during that year.
The pay award also provides a timely opportunity for teachers to review their wider financial position, including what they are building for retirement and whether options such as phased retirement could support their future plans.
Separate Wesleyan research among 500 teachers and education leaders found that almost two-thirds (65%) considered their pension benefits as important as their salary.
More than a quarter (26%) said the TPS had made them more likely to stay in the profession, rising to 37% among educators aged 18 to 24, underlining the potential role pension benefits can play in teacher retention.
However, the research also identified areas where teachers wanted change or greater clarity:
- 62% highlighted the level of pension benefits when asked what they would change about the TPS;
- 50% wanted a clearer way to receive updates about the value of their pension; and
- 42% wanted greater flexibility in how pension contributions are made.
Most respondents believed the TPS offered good value, at 58%, although only 11% rated it as “very good” value. Seven in 10 (71%) felt the scheme’s benefits were not as generous as they had been previously.
These findings reflect teachers’ perceptions of the scheme rather than an assessment of its benefits and suggest there may be a need for clearer information about how the TPS works and the value it provides.
The research also highlighted the financial pressures facing some teachers:
- 27% felt negatively about their current financial wellbeing;
- 20% said they saved when they could but did not have a long-term plan;
- 22% had financial goals but found them difficult to maintain; and
- 15% said they were living from pay cheque to pay cheque.
This wider financial picture may make a reduction in earnings difficult for teachers who might otherwise consider phased retirement.
Alec Collie added:
“September’s pay award will understandably prompt teachers to look first at what it means for their monthly take-home pay. But an increase in pensionable salary can also strengthen the pension they build for the future.
“Our research shows how highly teachers value their pension, but it also highlights uncertainty about benefits, a desire for clearer information and significant pressure on some teachers’ day-to-day finances.
“A pay rise, the beginning of a new school year and Pensions Awareness Week all provide useful prompts to review what you are building for retirement. Understanding your TPS benefits and the financial impact of options such as reducing your hours can help you decide whether phased retirement could work for your circumstances.”
The figures have been released ahead of Pensions Awareness Week, which takes place from 14 to 18 September 2026.
