How to build a strategy that supports employees nearing retirement

People now stop work at very different ages, and in very different ways. HR and reward teams can make that transition smoother for employees and for the business.

For decades, retirement meant leaving at a set age with a pension. The state pension age is rising from 66 to 67, phased in between 2026 and 2028, and many people expect to work well beyond it.

Research by My Pension Expert found over a third of over-40s with a workplace pension expect to still be working in their 70s. Others plan to retire early or cut their hours gradually.

Employers often assume staff in their 50s and 60s have their finances in order. In reality, many are supporting adult children or ageing parents while still trying to save. The same research found a quarter of over-40s in work don’t get enough information about their workplace pension, and 22% haven’t heard anything about it since they enrolled.

Why it matters to employers

Retirement planning isn’t just a financial wellbeing issue. It affects workforce planning, retention and the transfer of knowledge. Employees who can’t afford to retire may want to reduce their hours rather than leave altogether, while others may be ready to go but lack the confidence to make the move.

Understanding what people need gives employers more scope to plan ahead, retain valuable experience and manage succession.

Practical ways to build your strategy

Make future-planning conversations routine: Build retirement planning into regular check-ins for everyone, not just more mature staff. The default retirement age was abolished in 2011, and assuming when someone will retire can stray into age discrimination. Line managers are often the first people employees talk to about retirement, so give them a short guide on what they can discuss and where to send people.
Help people take control of their pensions: Direct employees to the free Pension Tracing Service to find pensions from previous jobs. If you offer a pension modeller, choose one that works backwards from the retirement someone wants. Remind anyone hoping to stop early that they’ll need to cover the years before their state pension starts, and that the minimum age for accessing a private pension rises to 57 in April 2028. Promote salary sacrifice as a tax-efficient way for employees to increase their pension contributions. From April 2029, only the first £2,000 of employee pension contributions made through salary sacrifice each year will be exempt from National Insurance. Contributions above that threshold will be subject to employer and employee National Insurance, so now is the time to review scheme design and budgets.
Open up access to guidance and advice: You can’t give regulated financial advice, but you can point people to MoneyHelper’s free guidance, or pay for individual pension advice, which can be provided tax-free up to £500 per tax year per employee, subject to the relevant conditions. Since April 2026, the FCA’s targeted support regime has also allowed pension providers with the relevant permission to make suggestions to groups of members in similar circumstances. Ask your provider whether it has permission to offer targeted support and what that could mean for your employees.
Offer phased retirement: According to WTW research, nearly half of workers aged 50 and over have started phasing into retirement or would like to. Offer reduced hours or a step back from management so people can ease out of work while the business keeps their experience.
Keep people well enough to stay in work: 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. Check whether insured benefits such as group life or income protection end at a set age and let employees know if their cover will stop while they’re still working. For employees caring for relatives, offer carer’s leave and flexible hours, which can make the difference between staying and leaving.
Prepare people for the emotional change: Leaving work can be harder than people expect. Some miss the routine and the people more than the job itself. Run pre-retirement workshops that cover how people want to spend their time, not just their money.
Plan knowledge transfer early: Identify roles where knowledge would be hard to replace and give experienced employees time to pass it on through mentoring and structured handovers.

A longer transition

Retirement can now unfold over several years. By joining up pensions, flexibility, health and wellbeing, and using a benefits platform to reach people at the right moments, you can help employees plan with confidence and leave on their own terms, while keeping their expertise for as long as they choose to stay.