People now retire at very different ages, and in very different ways. Some work into their seventies. Others leave early or wind down gradually. HR and reward teams are well placed to smooth that transition, for employees and for the business.
For decades, retirement followed a familiar pattern: a fixed leaving date and a pension. That’s no longer the norm. The state pension age is moving from 66 to 67, phased in between 2026 and 2028, and plenty of people plan to keep working long after that. According to My Pension Expert, more than a third of over-40s with a workplace pension expect to still be working in their 70s. Others want to stop early or reduce their hours step by step.
Employers often assume staff in their fifties and sixties have their finances in order. Many are actually supporting adult children or ageing parents while still trying to save. The same research shows a quarter of over-40s in work don’t get enough information about their workplace pension, and 22% have heard nothing about it since they enrolled.
Retirement planning reaches well beyond financial wellbeing. It shapes workforce planning, retention and how knowledge passes from one generation of staff to the next. Some employees can’t afford to retire and would rather cut their hours than leave. Others are ready to go but don’t feel confident enough to take the step. When you understand what people need, you can plan further ahead, hold on to valuable experience and manage succession.
Make retirement planning part of regular check-ins for all employees, not just more mature staff. The default retirement age was scrapped in 2011, and making assumptions about when someone will retire can stray into age discrimination. Employees often raise retirement with their line manager first, so give managers a short guide on what they can discuss and where to signpost people.
Point people to the free Pension Tracing Service so they can find pensions from previous jobs. If you provide a pension modeller, pick one that starts from the retirement someone wants and works backwards. Anyone hoping to stop early will need to fund the years before their state pension starts, and the minimum age for accessing a private pension rises to 57 in April 2028.
Promote salary sacrifice: it’s a tax-efficient way for employees to boost their pension contributions. From April 2029, only the first £2,000 a year of employee pension contributions made through salary sacrifice will be exempt from National Insurance. Anything above that will attract both employer and employee National Insurance, so now is a good time to review your scheme design and budgets.
Employers can’t give regulated financial advice. You can, however, direct employees to MoneyHelper’s free guidance, or pay for individual pension advice, which can be provided tax-free up to £500 per employee per tax year, subject to the relevant conditions.
Since April 2026, the FCA’s targeted support regime has allowed pension providers with the relevant permission to make suggestions to groups of members in similar circumstances. Ask your provider whether it holds that permission and what it could mean for your employees.
WTW research shows nearly half of workers aged 50 and over have started phasing into retirement or would like to. Reduced hours or a step back from management let people ease out of work gradually, while the business keeps their experience for longer.
DWP figures show that being sick, injured or disabled is the main reason people aged 50 to 64 are out of the workforce. Health assessments, physiotherapy, menopause support and an employee assistance programme can all help people stay in work, so promote them regularly.
It’s also worth checking whether insured benefits such as group life or income protection end at a set age. If they do, tell employees whether their cover will stop while they’re still working, and ask your insurer whether the cover could be extended. Note, this will usually raise premiums, particularly for income protection.
Carers need support too. Carer’s leave and flexible hours can make the difference between someone staying in their job and leaving it.
Retirement can be harder to adjust to than people expect. For some, it’s the routine and the colleagues they miss most, not the work itself. Pre-retirement workshops should cover how people want to spend their time as well as their money.
Identify roles where knowledge would be hard to replace. Then give experienced employees time to pass it on through mentoring and structured handovers.
Retirement can now unfold over several years. When pensions, flexible working, health and wellbeing are joined up, and a benefits platform reaches people when they need it, employees can plan with confidence and leave on their own terms. The business, meanwhile, keeps their expertise for as long as they choose to stay.
FlexGenius is a flexible employee benefits platform that brings pensions, salary sacrifice, health and wellbeing benefits and financial protection together in one place. Total reward statements show employees the full value of their package, so people approaching retirement can see clearly where they stand. Built-in communication tools help you share the right information at the right time, whether that’s a pre-retirement workshop or a reminder to trace old pensions.
Want to help your people plan ahead for retirement? Book a no-obligation FlexGenius demo to see how the platform can help.