Retirement templates toolkit

What is Retirement?

Retirement is the phase in an individual's life when they voluntarily withdraw from the workforce, typically after reaching a certain age or meeting specific criteria. During retirement, individuals cease regular employment and often rely on accumulated savings, pension plans, and government benefits to support themselves financially.

Employers' power to retire employees has been limited since the default retirement age (established at 65 in 2006) was removed on October 6, 2011.

Employers can no longer require employees to retire and must instead allow them to stay on until they choose to retire, unless they can identify legitimate business reasons why a specific retirement age is justified, necessary, and appropriate for their organisation and can defend this retirement age in the event of a discrimination claim.

Successive governments have pushed people to continue working (in light of shifting demographics and the cost of supporting retirees or the "economically inactive") on the idea that it helps older employees and allows firms to retain experienced and competent workers.

Retirement templates are essential for managing a low-risk, compliant Retirement process.

Common mistakes

Understand the common mistakes employers can make when managing this area of HR, helping you reduce risk, prevent unnecessary costs and ensure the process is handled fairly, consistently and correctly.

• Assuming retirement is automatic – Treating an employee as leaving simply because they have reached a particular age.
• Making age-based assumptions – Assuming an employee wants or should want to retire because of their age.
• Failing to discuss plans appropriately – Avoiding reasonable conversations about future working arrangements and succession planning.
• Ignoring flexible options – Failing to consider alternatives such as reduced hours or different working arrangements.
• Making retirement decisions informally – Relying on assumptions or conversations without properly confirming arrangements.
• Failing to plan succession – Waiting until an employee leaves before considering knowledge transfer and replacement arrangements.
• Overlooking pension questions – Giving financial advice rather than signposting employees to appropriate sources of information.
• Failing to document agreed arrangements – Leaving the timing and terms of retirement unclear.

What is a typical retirement process workflow?

Here we show you which resources to use to effectively assist a retiring employee, taking into account the different decisions and directions that are likely / possible.

Following this flowchart will ensure that you factor in all eventualities, follow legal / code of conduct or best practice processes, communicate effectively, and reduce the risk of things going wrong.

FAQs

What is retirement?

Retirement is when an employee leaves work, usually because they have decided to stop working. There is no general statutory retirement age in the UK.

Can an employer force an employee to retire?

Employers generally cannot require employees to retire simply because they reach a particular age. Any compulsory retirement arrangement requires careful consideration of the applicable legal requirements.

Should employers discuss retirement with employees?

Employers can have appropriate conversations about future plans, provided they do not make assumptions or discriminate because of age.

What should employers consider when an employee retires?

Employers should consider notice, holiday, pension arrangements, handover, benefits, final pay and any relevant contractual requirements.

Should retirement be treated like any other resignation?

Many aspects of retirement will be managed in a similar way to another planned departure, although pension and age-related considerations may make additional planning appropriate.

Why use HRDocBox to support retirement?

HRDocBox combines real-world HR experience, subject-matter expertise and commercial understanding to support effective retirement arrangements with practical, tried-and-tested resources. With instant access, editable documents, ongoing updates and 12 months' access, you get practical HR support when you need it.