Discussing retirement with employees: what can employers ask?
An experienced employee holds years of knowledge about your customers, processes and the way your business works. You want to plan ahead, but you are unsure how to discuss their future without making them feel you want them to leave.
It is a conversation many business owners feel nervous about. Saying nothing can leave you worried about continuity. Asking the wrong question can damage a relationship you value.
A useful starting point is to separate two things: understanding what someone wants from their working life and making your business less dependent on any one person.
Can an employer ask an employee about retirement?
Usually, start with regular career conversations for everyone and let the employee raise retirement. A direct question may be appropriate where there is a good business reason, but there must be no pressure to answer, decide or retire. Do not raise retirement during performance or attendance discussions.
This reflects Acas guidance on retirement.
Is there a compulsory retirement age in the UK?
For most jobs, there is no default retirement age. Employees do not have to leave when they reach State Pension age and can usually continue working for as long as they choose.
Limited exceptions exist, including some roles with a legally set retirement age. Employers considering a compulsory retirement age should get specialist advice.
Reaching pension age and deciding to finish work are separate matters. GOV.UK explains working after State Pension age.
How should you start a conversation about future plans?
Make future planning a normal part of one-to-ones across your team.
You could ask:
- “What would you like to focus on over the next year?”
- “Are there skills or responsibilities you would like to develop?”
- “What would make your role work better for you?”
- “What support would help you achieve your goals?”
Choose questions that fit the person and the conversation. Listen to what they actually say rather than trying to steer them towards an answer.
For your managers, preparation helps. Before a meeting, ask them to think about its purpose, what they need to understand and how they will follow up. A conversation about development should leave the employee feeling heard and clear about the next steps.
What should managers avoid saying?
Comments such as “Surely you’re ready to slow down?” or “We need younger people coming through” can make someone feel their experience is no longer valued.
Avoid retirement jokes and assumptions about someone’s energy, ambitions or finances. Putting pressure on someone to retire is likely to be age discrimination. Employees do not have to disclose retirement plans.
Keep offering meaningful development opportunities. Ask about the individual’s goals rather than deciding what they might want based on their age.
What if the employee brings up retirement?
If they want to explore retirement, discuss their wishes without rushing them into a commitment. An informal indication is not formal notice; someone who has not given formal notice can change their mind.
Helpful questions might include:
- “What would you like us to understand about what you’re considering?”
- “Are you exploring options, or have you made a decision?”
- “Would you like information about any working arrangements we could consider?”
Check your understanding afterwards. A short, factual note can distinguish what was discussed from what, if anything, was agreed.
Ask before sharing personal plans with colleagues. Even a well-meant announcement can be upsetting if the employee was only thinking aloud.
Could phased retirement be an option?
Some employees may want to reduce their hours or change their working pattern before leaving. Requests are not automatically guaranteed.
If someone is interested, explore what the arrangement would mean in practice:
- Which responsibilities would they retain?
- How would customer needs and team cover be managed?
- Would duties need to be redistributed?
- When would you review the arrangement?
Reduced hours can affect pension benefits, so encourage the employee to check with their pension provider before deciding. Record any agreed employment changes clearly.
How can you prepare your business without relying on a retirement date?
You do not need a confirmed leaving date to improve continuity.
Start by identifying tasks, relationships or decisions that depend heavily on one person. This is useful across your business, whatever the age of the people involved.
For example, imagine only one person knows how to resolve a recurring production fault. Your immediate planning question is: “How can we make sure that knowledge is available when they are on holiday, absent or eventually move on?”
Practical steps could include:
- Writing down important processes and troubleshooting steps
- Training another colleague to provide cover
- Sharing key customer and supplier information securely
- Building handover time into project plans
- Reviewing where the business needs additional skills
Explain why you are doing this and involve the people whose expertise you need. Give knowledge-sharing proper time and recognition alongside their other work.
This makes planning useful today, rather than dependent on a decision someone may not be ready to make.
Need help preparing for a sensitive conversation?
You may know what your business needs but still feel unsure how to put it into words.
We help businesses prepare for difficult people conversations, think through the options and put agreed next steps into practice. That can include helping your managers prepare, reviewing relevant paperwork and planning how responsibilities could be covered.
You do not need to have the conversation worked out before speaking to us.
