May 07, 2025

Rethinking Mandatory Retirement

While mandatory retirement policies have largely been abolished, some still affect certain professions and perpetuate age-related stereotypes. Advances in medical care and healthier lifestyles allow many workers to remain productive well beyond traditional retirement ages. Read through to explore the challenges and opportunities involved in replacing outdated policies with fairer, capability-based approaches.

 

In 1967, the Age Discrimination in Employment Act banned mandatory retirement before age 70 for most professions. Subsequently, Congress eliminated mandatory retirement entirely, with exceptions for specific professions, including pilots, police officers, judges and air traffic controllers. Today, thanks to medical advances and healthier lifestyles, individuals are active and productive into their 70s and beyond. Despite this progress, some professions, such as law firms, still enforce mandatory retirement. These policies are often motivated by business considerations — such as creating advancement opportunities for younger attorneys — rather than legal mandates. And while there are no enforced mandatory retirement policies in the medical field, the American Medical Association has established guidelines for assessing the physical and mental health of older physicians to ensure quality patient care.

As life expectancy rises, there is a growing need and desire for individuals to work beyond traditional retirement ages for financial stability, engagement and a sense of purpose — all of which contribute to physical and mental health.

Here are some considerations for rethinking retirement policies:

  • Value experience. Older workers offer deep skills, wisdom and judgment. They are often better at maintaining goodwill with long-term clients while mentoring younger employees. Consider providing postretirement opportunities such as mentoring, management or training.
  • Create flexible transitions. Rather than setting a strict retirement age, introduce part-time roles with adjusted compensation to facilitate smoother transitions into retirement. Additionally, you could create financial incentives for senior professionals to gradually reduce their workloads. This kind of flexibility supports the goal of valuing experience.
  • Encourage fairness. Conduct uniform and objective annual assessments of performance that focus on capabilities rather than age. Promote longevity through voluntary wellness programs and work-life balance incentives. The objective is to shift the emphasis from age to abilities and ongoing effectiveness, avoiding blanket rules that enforce retirement based on stereotypes about frailty or decline.
  • Challenge perceptions. Ageist assumptions often undervalue older workers. Ensure opportunities for younger staff while recognizing the contributions of senior employees by creating intergenerational collaborative teams that can foster mutual respect and showcase the benefits of age diversity.

The case for alternatives

The link between chronological age and functional ability is tenuous. Aging experts assert that policies that rigidly segment life into stages — student, worker, retiree — are outdated and driven by stereotypes. Companies should respect both wisdom and performance. Mandatory retirement policies can lead to a loss of valuable expertise, resulting in an "experience drain" that negatively affects business functions.

While regular assessments are crucial in professions impacting public safety, a one-size-fits-all approach is unfair and ineffective for most roles. Implementing careful testing for skill and capacity can offer a more equitable solution. However, employers should seek legal counsel or HR advice to ensure compliance with applicable federal, state and local laws.

A changing workforce

Business leaders increasingly recognize the value older workers bring to the table. Intergenerational teams — combining youthful energy with seasoned experience — could represent the workforce model of the future. This transition benefits older employees while encouraging younger generations to embrace evolving perceptions about age and work.

Now is the ideal time to reconsider mandatory retirement policies and explore improved alternatives. With thoughtful strategies, we can cultivate workplaces that honor both experience and capability, creating opportunities for everyone.

©2025


 

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