Progressive retirement is gaining attention as a way for employees to enjoy partial retirement while working part-time, yet only 27,000 have opted in, primarily due to a lack of information. A recent agreement aims to lower the eligibility age to 60 in 2025. Securing employer approval is crucial, and framing requests to highlight benefits for the company can ease negotiations. This approach not only aids in talent retention but also offers potential cost savings for employers, as evidenced by successful programs like Safran’s.
Understanding Progressive Retirement: A Growing Opportunity
As of the end of 2023, only 27,000 employees have embraced the concept of progressive retirement, a system that allows individuals to enjoy a partial retirement while continuing to work on a part-time basis. This promising initiative, however, has faced challenges in gaining traction, with only 3 to 4% of eligible participants taking advantage of it. The primary reason for this low uptake is a lack of sufficient information, as noted by Magalie Auger, a coach specializing in professional transitions for senior executives. However, change is on the horizon: an agreement reached in mid-November between social partners aims to lower the age for eligibility to 60 starting in 2025, expanding access for many workers.
Navigating Employer Negotiations for Progressive Retirement
To qualify for progressive retirement, securing your employer’s approval is essential, which often entails a negotiation process. Magalie Auger emphasizes the importance of framing your request in a way that highlights the benefits to your employer rather than focusing solely on personal gains. Just as a shoe salesperson doesn’t dwell on their profit from a sale, you should similarly illustrate why granting you this arrangement is advantageous for your employer.
If you possess unique skills and experience, you can present compelling arguments. By allowing you to transition to part-time work, your employer can reduce payroll costs and invest in hiring a less experienced, lower-cost replacement, such as an apprentice. This arrangement not only facilitates a smoother knowledge transfer but also extends the duration of training from the usual six months to one or two years. Auger advises that you position your request for progressive retirement as a strategic move for ensuring continuity and transferring expertise at a reduced expense.
Additionally, if health issues lead to frequent sick leave, negotiating for progressive retirement could be beneficial for both you and your employer. By reducing your hours, you can mitigate fatigue and lessen medical absences. “A part-time employee under progressive retirement can be more effective than a full-time employee who is often absent,” points out Auger, allowing companies to optimize their operational costs.
Moreover, progressive retirement is not solely a tool for managing the end of careers; it also serves as a strategic advantage for attracting and retaining skilled talent. Companies that offer this option signal to potential employees that they value flexibility and work-life balance. For instance, a seasoned professional in their mid-40s with two decades of experience would likely prefer to join an organization that supports progressive retirement over one that lacks such flexibility.
Take Safran, the French aerospace leader, as an example. They implemented a proactive progressive retirement policy back in 2015, making it accessible from age 60. This approach has resulted in an impressive 60-70% participation rate among eligible employees, showcasing the effectiveness of such policies in retaining valuable talent.