The answer starts with recognizing that today's workforce doesn't retire the way it used to. Many employees expect to work past 65, often for financial reasons or because they want to stay active and engaged. Employers who build succession plans around outdated retirement assumptions are setting themselves up to fail.
What doesn't work (and is illegal) is pressure. You can't demote older employees, cut their pay, strip responsibilities, or make their jobs unpleasant in hopes they'll "choose" to retire. That’s not workforce planning—it's an age discrimination constructive discharge claim waiting to happen.
So, what does work?
First, make retirement financially possible. Employees retire when they can afford to. Offer a strong retirement plan, encourage participation, and structure employer matches to promote meaningful savings. The easier you make it to save, the more likely employees can eventually step away.
Second, educate employees early. Many workers underestimate what retirement actually costs. Work with plan providers to offer guidance on saving and investing, and make clear that loans and early withdrawals undermine long-term security.
Third, eliminate the all-or-nothing choice. Retirement doesn't have to mean walking out the door for good. Offer voluntary phased-retirement options—reduced schedules, part-time roles, job sharing, or transitions into mentoring and training positions.
Fourth, standardize succession planning around roles, not people. Succession plans should attach to positions and critical functions, not to specific employees. When planning is role-based and applied consistently across the organization, it looks like legitimate business planning—not an effort to target older workers.
Finally, gather workforce insight the right way. Instead of asking older employees when they plan to retire (don't), use stay interviews to understand what keeps employees engaged and what might cause them to leave. Just as important, do this for everyone, not just older workers. When stay interviews are a uniform practice across age groups, they provide valuable planning insight without creating age-discrimination risk.
The bottom line: You can't force older employees to retire. But you can create conditions that make retirement a realistic, voluntary option—while giving your business the time and structure it needs to plan for what comes next.