Despite millions retiring annually, the topic remains taboo for many employers and employees. Every year, millions leave the workforce, yet discussions about this common rite of passage are often avoided. This INSEAD Knowledge podcast features Graham Ward, Adjunct Professor of Organisational Behaviour and Isabelle Lebbe, Partner in the Investment Management practice of Arendt & Medernach, discussing the often-neglected issue of retirement.

Drawing on years of research in this field, the pair highlight the significant impact that retirement can have on both individuals and the organisations they leave behind. They point out that retirement should not merely be seen an event but is, in fact, a complex process that requires careful consideration and planning from both sides. 

Retirement can mean a loss of identity and purpose for the retiree, while the firm is losing an individual with a wealth of important experience and expertise and a broad network of relationships that can be almost impossible to replace. 

It is therefore vital that there are clear and open channels of communication that deal not only with succession planning but also with the emotional aspects of retirement. This includes firms being proactive in offering support and resources, from coaching to pre-retirement sabbaticals, to ease the transition. 

Ward and Lebbe argue that with an ageing population, changing demographics also mean firms need to stop viewing retirement as an end. Instead, they must view it as a valuable opportunity to maintain relationships and leverage the experience of retiring employees to ensure a positive experience for all involved.