Doctors are cutting hours and leaving the NHS pension scheme in an attempt to manage the impact of punitive pension taxation, according to a new study.

A fifth have quit, or plan to quit, the NHS pension scheme permanently in a bid to avoid tax charges.

Meanwhile, a further fifth had or planned to 'strategically leave' and re-join the scheme in an attempt to limit their pension growth, according to data from specialist financial services mutual Wesleyan.

Its research showed that nearly a third of medical professionals surveyed had, or planned to, reduce their hours to minimise the risk of receiving an annual allowance or lifetime allowance tax charge.

More than a quarter of medical professionals surveyed – including senior hospital consultants and GPs – plan to retire in the coming year. Of those retiring earlier than planned, one in six said it was because they had hit their lifetime allowance (LTA) on pension savings.

Alec Collie, head of medical at the Wesleyan Group, said: “Doctors continue to be stung by pension rules that simply aren’t fit for practice. The government has recognised this, but doctors are still waiting for any changes to take effect, and are meanwhile continuing to go above and beyond for their patients – in some cases, at their personal expense.”

He said it’s understandable that doctors may want to consider options like leaving the NHS Pension Scheme to help manage their pension tax risk but it’s something to urge caution about.

Mr Collie said: “Exiting could mean doctors end up with a diminished pension pot on retirement and lose valuable benefits that the NHS Pension Scheme brings – such as the ‘death in service’ gratuity.”

Figures published by the NHS Business Services Authority (NHSBSA) showed that between April and July this year, 66,167 NHS staff in England and Wales opted out of their NHS pensions, more than double the 30,270 who removed themselves in the same period in 2021.

Around 23,000 of the NHS staff who stopped paying into their pensions said it was because they could not afford it, almost twice the number (11,500) who said the same last year.

• The survey of 293 medical professionals was conducted by Wesleyan between 18 August and 5 September.