Phased retirement and flexible working arrangements
Instead of your staff retiring from work completely, you may want to arrange a phased retirement or flexible working arrangements with them. This could involve:
- reducing their hours and/or working days
- changing their job to make it less stressful or labour intensive
- taking on a training or mentoring role
- retiring as a member of staff but working as a consultant
- continuing to work full time with additional purchased leave entitlements and other flexible working arrangements.
The benefits for you of phasing retirement include:
- retaining staff knowledge and skills for a longer period
- maintaining diversity of skills and experience in the workplace
- having staff who understand the needs of mature age customers
- training and mentoring younger staff.
The benefits for your staff include:
- ongoing income for financial security, holidays and retirement
- staying connected with work friends and colleagues
- maintaining self-esteem and social status, and having a sense of purpose
- being mentally and physically active.
Phased retirement is generally an individual arrangement between you and your staff. To ensure that phased retirement arrangements work well:
- foster a culture that respects older staff who reduce hours or withdraw from former duties
- make sure phased retirement and flexible working arrangements are consistent with equal opportunity requirements.
- the arrangement meets the requirements of the relevant award, agreement or employment contract
- there is any impact on superannuation - superannuation funds, financial advisers and the Australian Taxation Office can advise.