Marks & Spencer
Retirement: Removing your mandatory retirement age
In 2001 Marks & Spencer started a review of their retirement practices. This was concluded in 2002 and resulted in the removal of the company mandatory retirement age of 65.
M & S were keen to retain and attract highly effective sales advisors (in particular) irrespective of their age. Feedback from the stores indicated that staff over 60 were making a valuable contribution to the success of the business. At the same time individuals approaching retirement age were expressing a desire to work beyond their NRA of 60. The business was also aware of a general shift in public opinion towards retirement, new age legislation was planned and they also understood the impact of changing workforce demographics.
The Pensions team established what the impact of removing the mandatory retirement age would be. The insurance team spoke to insurance providers to confirm provision of cover and costs. The Occupational Health team were also involved as the business sought advice on issues surrounding the employment of older staff in a retail environment.
When the idea was first raised, senior managers expressed some concerns as to the effect of these changes - they thought it would be a big issue! However, the business has been surprised at the very limited concerns of line mangers - even on the subject of poor performers. At the start employees were a bit confused as they thought they were not being allowed to retire. This underlined the need to communicate more effectively - especially on the differences between retirement age and pensionable age.
The number of people now employed by M & S aged over 65 is over 700 a rise from 21 since 2002, including a small number over 75. Line managers feel this move has widened the recruitment pool. While staff feel they now have more choice - removing retirement age has been allowed people to stay on when personal circumstances have changed. The new policy has also been linked into the M & S flexible working policy.
Since the policy was introduced staff have indicated that they appreciate the increased flexibility and choice that the removal of retirement age has allowed.
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Retirement: Removing your mandatory retirement age
In 2001 Marks & Spencer started a review of their retirement practices. This was concluded in 2002 and resulted in the removal of the company mandatory retirement age of 65.
M & S were keen to retain and attract highly effective sales advisors (in particular) irrespective of their age. Feedback from the stores indicated that staff over 60 were making a valuable contribution to the success of the business. At the same time individuals approaching retirement age were expressing a desire to work beyond their NRA of 60. The business was also aware of a general shift in public opinion towards retirement, new age legislation was planned and they also understood the impact of changing workforce demographics.
The Pensions team established what the impact of removing the mandatory retirement age would be. The insurance team spoke to insurance providers to confirm provision of cover and costs. The Occupational Health team were also involved as the business sought advice on issues surrounding the employment of older staff in a retail environment.
When the idea was first raised, senior managers expressed some concerns as to the effect of these changes - they thought it would be a big issue! However, the business has been surprised at the very limited concerns of line mangers - even on the subject of poor performers. At the start employees were a bit confused as they thought they were not being allowed to retire. This underlined the need to communicate more effectively - especially on the differences between retirement age and pensionable age.
The number of people now employed by M & S aged over 65 is over 700 a rise from 21 since 2002, including a small number over 75. Line managers feel this move has widened the recruitment pool. While staff feel they now have more choice - removing retirement age has been allowed people to stay on when personal circumstances have changed. The new policy has also been linked into the M & S flexible working policy.
Since the policy was introduced staff have indicated that they appreciate the increased flexibility and choice that the removal of retirement age has allowed.
Click icon to download a printable version of the case study
download pdf
