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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
  • job-sharing
  • 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.

Consider whether:

  • 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.
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