Transitional Retirement Income Planning

    View Author October 2011
    With the abolition of the statutory default retirement age, employers may in future find that it is much more difficult to plan for the retirement of their employees. This is because employees may choose to keep their retirement plans secret from their employers in order to avoid being sidelined in the run-up to their anticipated retirement (with the resulting loss of flexibility should they later decide that they wish to continue working for a longer period).

    It is therefore likely that employers will begin to see increasing numbers of employees simply giving the contractually required notice before retiring. This will be a particular problem for employers where the employees are in highly skilled or managerial positions.