Late career and retirement

The value of supporting workers preparing for late career and retirement 

The transition from work to retirement is changing as our population ages, influenced by factors such as longer lifespans and longer working lives. Instead of permanently leaving the full-time workforce at 65 years of age, the process of retirement may vary for each person.   

Many people are working beyond traditional retirement ages either by choice or necessity. Some workers seek alternative forms of retirement, including phased retirement, transition into unpaid work, entering an entirely new field, or starting a business. Some people even ‘unretire’, either voluntarily (e.g. because they are bored) or involuntarily (e.g. for financial reasons). 

The late career and retirement transition varies between people and over time for individuals. Many people look forward to retirement, but it can come with significant change, anxiety about the future, and loss of identity, meaning, relationships and structure. Together these factors can create psychological distress. Often retirees can feel overwhelmed by the adjustments and choices that come with this transition. 

Common challenges include: 

• leaving a meaningful legacy – some want to know that friends, colleagues or clients have benefited from a worker’s efforts 
• fear of the unknown – work provides identity, clear roles and routines, as well as social interactions and a sense of purpose and value, while retirement is an unknown quantity 
• ageism – comparisons with younger workers, managers making assumptions about career or retirement plans, and being overlooked for training and development opportunities can make work more stressful for older workers 
• work adjustments – fear of being stereotyped or discriminated against leads people to hide physical and mental changes, which can affect physical and mental health and safety 
• making assumptions – and avoiding difficult conversations means people may miss opportunities to better prepare for late career and retirement 
• making decisions – having the freedom to make decisions can be exciting but also daunting and confusing.  

What organisations can do to support late career and retirement transitions 

When pre-retirees receive assistance from their employer in the lead up to retirement, they are more likely to feel confident about their wellbeing and finances. Older workers can also create organisational value in a range of ways, e.g. by retaining knowledge and experience, providing access to a larger talent pool and contributing to higher staff morale and motivation. 

Here is how your organisation can support workers late in their career and those retiring: 

• Raise awareness by educating leaders and others about the myths and stereotypes about ageing. 
• Listen to older workers to understand their needs and assess supports available to them. 
• Review policies and procedures to ensure recruitment and advancement processes are free from discrimination and bias. 
• Enable knowledge transfer through formal mechanisms (e.g. succession planning) and informal mechanisms (e.g. mentoring or buddy systems). 
• Be open to flexible working arrangements (e.g. part-time work, working from home). 
• Train managers on compliance and legal considerations relating to age discrimination. 
• Introduce a structured transition to retirement where managers are trained in how to initiate timely and constructive retirement conversations. 
• Deliver age-specific support programs about topics such as health promotion, financial management, community engagement and volunteer work, elder care and mental health. 
• Provide access to planning and support tools and resources. 
• Maintain connection with retired employees through annual gatherings, newsletters or social media groups. 
• Be aware of employers’ obligations under anti-discrimination laws – e.g. the Age Discrimination Act 2004. 

Older workers are a valuable source of knowledge and expertise, and can be an important support for others in your organisation. 

What people can do as they transition to late career and retirement 

Good work is good for mental health and wellbeing, and supports personal identity, self-esteem and social connections. 

Here is what you can do as you prepare for retirement: 

• Engage in good planning. Taking control over how we move into retirement is associated with increased satisfaction, and maintaining and creating supports. 
• Set personal goals. Planning should go beyond just the financials and consider other aspects of wellbeing, e.g. social connections, family, relationships, health, learning and work (including volunteer work and hobbies). 
• Have late career conversations. This may be around flexible work options, mentoring younger workers and/or learning and development opportunities. Prepare for these conversations so it is clear what the request is, why it is important, and how it can be implemented effectively and fairly within the work context. 
• Seek professional support, about personal goals as well as financial matters. 

Retirement planning is about more than setting just your financial goals. It’s also important to set some personal goals.