The Importance of Managing Retirement Transitions

Prior to now, the subject of retirement and how we help people within organisations manage this transition wasn’t something of major interest or concern.  It almost could be said that it happened naturally.  Most people would work for a company for several years and then when they reached the age of 65, it would be time for them to retire.  This meant that they would be on their way – leave their jobs and be free to do whatever they wanted and to figure this out without any interaction or interference from their employer.

If an employee was under performing, there was an age cap at which they would have been forced to stop working anyway, meaning that if you waited long enough, the older resource would just leave.  Now however, it is no longer possible to get rid of someone simply because they are ‘old’.  People have the choice to stay on for as long as they want to, whether they are performing exceptionally well or not.

It also used to be the case that there was possibly a more natural churn.  The old left and the younger, fresher and newer came in.  As time goes on, this will continue to change.  There is no longer a constant supply of young talented people coming into work.  There is however, a growing supply of older workers available as a resource to be called upon if engaged and managed effectively.  But how will this be done and how will it be done well?

Given the recent government legislation changes, employees now have more choice about when they may want to retire.  For many, the transition into retirement is a significant shift and milestone symbolising the end of an era.  It is the end of their working life and what is beyond is currently unknown. This could be exciting to some and it can also be rather scary and daunting to others.

There are many factors that influence a person at this stage in their life and career. There are also many considerations to be taken into account and some key decisions to be made. Most are not ready to think about these issues nor are they ready to make any informed decisions.

For several people, money is a real a concern and the ability to continue working and earning and income will be welcomed. How long they want to continue working for will be a consideration and how much they need to earn in order to survive or to have the lifestyle that they want will be key in helping an individual decide what to do and when to retire.

Recent studies have shown that people coming up to the retirement age nowadays are very unprepared and face large mortgages, significant debt and often have fairly low savings to live off in their future years.  This can lead to a substantial amount of worry, stress and concern as people move closer into retirement.

Beyond retirement is something that many of us go through life not really thinking about. It feels so far off and then when it creeps up on us we don’t have a clear idea of what the possibilities are let alone what we actually want.  To stop working completely feels like a waste nowadays. It’s a waste of talent, knowledge and expertise.  It also risks someone reacting negatively to such a drastic change.  The loss of interaction, purpose for being, routine actions and mental stimulation can lead to a rapid decline in health. 

At this later stage in life there are family responsibilities to think of as well. Older grandparents may need caring for.  Partners and children may desire and deserve more attention.  Then there are an individual’s own wants and desires to perhaps explore other activities.  A second career or a different way of maintaining a work element but in a more flexible way can be very appealing to some.

Simon North, co-founder of Position Ignition

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