I remember it more than a decade later.  I was in a picturesque town to offer a 57-year-old lines maintainer a voluntary retirement package.  This maintainer was in line for the maximum package, if he wanted it:  two years’ salary, a retirement bonus of one month’s pay, plus post-retirement benefits that included extended health and dental care.  I called it the whole enchilada. 

In cases like this it wasn’t unusual for the eligible employee to leap into the air and proclaim “YES!!” as his or her ship sailed in.  But my maintainer sat looking bewildered, even lost.  “You mean I can’t work here anymore?” he queried me.  I affirmed that if he chose retirement, it would mean an end of employment with us, but it wouldn’t stop him being employed elsewhere. 

It occurred to me that the maintainer had never thought practically, or even in abstract, about his own retirement.  He was fit and able to do his job, and he loved doing it.   Rather than investigate his concerns about retirement, I told him I did not want an answer today and that he should discuss this offer with his wife and a financial advisor, then let me know the decision within 10 days.

I knew what would happen once his wife saw the offer, and sure enough there was a voicemail on my phone the next morning.  “We’ve talked it over and decided to accept your retirement package,” said my maintainer.  “I’ll sign it and send it to you today.”  He still sounded uncertain, or at least unenthusiastic, but I surmised that his wife’s enthusiasm made up for the both of them.

I think of that episode now and then when the topic of retirement comes up in conjunction with staff and succession planning for organizations.  How many of us think seriously about what we’ll do when we retire?  We spend almost all of our retirement planning consulting with a financial advisor about pensions, mutual funds, trusts and the like.  Got to make sure we have enough coming in to live a comfortable retirement, hopefully for a long time.   But what is it we will actually do in retirement?  That’s as worthy of thought as the financial side.  And it’s something employers should also be giving a lot of thought to on behalf of older employees.

Employers should retain and develop older workers (50 plus), particularly with a demographic squeeze looming from the retirement of Baby Boomers.  There is no better way to demonstrate commitment to longer service workers by helping them plan and transition to the next phase of their lives.  But now that mandatory retirement at age 65 has been eliminated in a growing number of jurisdictions, employers need also be mindful of employees’ abilities to continue doing their jobs after the age of 65, should they decide not to retire.  There are obligations to find alternative duties if an employee isn’t up to his or her former duties, which may squeeze some entry level or developmental jobs best suited for the newer workers coming on board.

So it makes sense for employers to get more actively involved in helping employees see their own retirement possibilities.  That way, employers can better manage both workforce renewal and retention of up-and-coming talent, while respecting the wishes of older workers, and demonstrating tangibly that they are good corporate citizens.  On the employee side of the equation, a happily retired employee is a good ambassador for future recruitment, and a reserve of talent, should the employer require contingent support for short periods or projects. 

But it goes beyond even those benefits.  A retirement plan can actually help people live longer with a more purposeful and meaningful retirement.  It can even make the difference between life and death in some cases.

“A church minister I know regularly buries people just months before or after retirement because of the stress,” says Richard Atkinson, author of Don’t Just Retire – Live It, Love It!   He’s doing his part to help reduce retirement stress is by counselling retirees-in-training to have a good plan beyond the financial.

“It’s not about giving up work and relaxing,” says Richard, pointing out that the honeymoon period after retirement can be very short without a meaningful purpose.  With a good vision and action plan, retired persons can accomplish goals that were set aside for a career and family.  It could involve more education, a fitness program, new experiences, challenges and relationships.

To be sure, the financial side of retirement remains important, to ensure that the finances are there for a long and fulfilling retirement.  That’s why  Richard, a former human resources executive works with financial advisors to help people plan more holistically about their retirement.  All of this is easily transportable to corporate environments where progressive employers can bring in the counselling to help employees see and make a transition plan for successful retirement.

I sometimes wonder what became of my reluctantly-retiring lines maintainer.  Maybe after some adjustment, he found a new purpose and put his energies toward it.  Even if he went to another job, hopefully he finally began thinking regularly about his eventual retirement.  And planning for it.

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