Retirement is one of the personnel activities. It includes ensuring workers retire. A worker can retire at an early age (early retirement), it may go to a regular retirement, may also serve extra time and retire later than the retirement age. The organization can affect one’s decision on the timing only partially.
In retirement, there are two policies:
- Fixed retirement age policy
- Flexible retirement age policy
The first policy is based on the fact that the worker should leave once he reaches the retirement age. The advantage is a clear date of leaving and thus the option to plan the succession to the position.
The second policy allows workers to stay beyond retirement age. The advantage is the possibility to exploit the potential of high-quality staff, who would otherwise have gone, even further.
A more appropriate policy is seen today in the flexible retirement age policy, if performance is the main criterion for an employee who wishes to serve extra years.