Australia is not running out of experienced people. We are running out of effective ways to keep their knowledge, judgement and capability in circulation.
In many workplaces, retirement is still treated as a hard stop.
There is a farewell function, a speech, a card and perhaps a promise to “stay in touch”. Then the employee leaves, their access is cancelled and decades of experience walk out with them.
The position may eventually be filled. The experience is much harder to replace.
The workforce is changing
In 2024–25, Australia had approximately 4.5 million retired people aged 45 and over. Another 156,000 people retired during the year, at an average age of 63.8. Those still working expected, on average, to retire at 65.6.
At the same time, more Australians are continuing to work beyond what was once considered the traditional retirement age. In June 2025, 16% of Australians aged 65 and over were employed, compared with just 6.8% in 1978.
This does not mean everyone wants to remain in full-time employment indefinitely.
It means retirement is becoming more varied.
Some people want to stop completely. Others want to reduce their hours, take on short-term projects, mentor colleagues, provide specialist advice, volunteer or build a portfolio of different activities.
The problem is that most workplaces still offer only two choices:
Stay in your existing role or leave altogether.
That is no longer enough.
What actually leaves when an experienced employee retires?
The greatest loss is rarely contained in a position description.
Experienced employees carry knowledge that is difficult to document:
- why a particular process was designed the way it was
- which risks are most likely to become serious
- how to navigate difficult stakeholder relationships
- what has been tried before and why it failed
- who to contact when something unusual happens
- how to recognise the early warning signs of a problem
- the practical shortcuts that are safe — and those that are not.
This is organisational memory.
Employers can spend months recruiting a replacement while spending only a few hours capturing what the departing employee knows.
A handover document is useful, but it cannot transfer judgement, context or relationships.
That requires time, conversation and deliberate exposure to real work.
Older workers can also be part of the skills-shortage solution
Jobs and Skills Australia found that, in 2025, only 20% of occupations in which at least 30% of workers were aged 55 or older were experiencing shortages. Among occupations where mature-age workers represented no more than 10% of the workforce, the shortage rate was 39%.
The agency concluded that the results point to the importance of age-inclusive employment in helping to alleviate workforce shortages.
This does not suggest that mature workers should remain indefinitely or prevent younger employees from progressing.
Good workforce planning does the opposite.
It brings generations together.
An experienced employee may reduce their operational workload while mentoring a successor. A technical specialist may move into training, assurance or project work. A former leader may coach emerging managers without continuing to hold the senior position.
The aim is not to preserve every job exactly as it was.
It is to retain the parts of a person’s contribution that still have value.
Flexible contribution needs structure
Informal promises made during farewell speeches rarely become meaningful opportunities.
A better approach is to create clear pathways such as:
- phased reductions in hours or responsibilities
- fixed-term transition roles
- mentoring and coaching assignments
- technical training or assessor roles
- short-term project work
- casual support during peak periods
- alumni or retiree talent networks
- advisory panels and specialist consulting arrangements
- volunteering, board or community opportunities.
These arrangements must be genuine. They should have defined expectations, appropriate remuneration where the work is paid, and clear boundaries.
A retiree network should not become a list of former employees who are contacted only when an organisation has failed to plan.
Nor should mentoring be treated as an honorary title with no time, support or purpose attached to it.
Retirement is also a human transition
Financial preparation matters, but it is only one part of retirement planning.
Work provides far more than income. It can provide routine, relationships, identity, recognition, challenge, status and a reason to get moving each morning.
When those things disappear at once, even a financially secure person can struggle.
In our Changing Gears™ work at Career Life Transitions, we regularly see that people are not necessarily afraid of retirement itself. They are uncertain about what will replace the structure and sense of relevance that work has provided.
The most successful transitions usually begin before the final day.
People need the opportunity to consider:
- What will give my week structure?
- Where will I find social connection?
- What parts of my professional identity do I want to retain?
- What would I like to learn?
- Who could benefit from my experience?
- What does meaningful contribution look like now?
- Am I retiring from work, or am I also moving towards something?
Retirement should create greater choice and control. It should not require a person to abandon every part of their working identity overnight.
Four questions HR should ask
Before an experienced employee leaves, HR and leaders should consider:
- What knowledge would be difficult to replace?
Identify critical relationships, technical knowledge, historical context and decision-making capability. - Who needs access to that knowledge?
Knowledge transfer should involve successors, emerging employees and the wider team — not just a document stored in SharePoint. - Could the employee contribute in a different way?
Explore reduced hours, mentoring, training, projects or advisory work without assuming they want to remain full-time. - Has the person been supported to plan the transition?
A respectful conversation about purpose, identity, wellbeing and future contribution can be just as valuable as information about superannuation.
These conversations must remain voluntary. They should never be used to pressure someone to retire or imply that age has reduced their value.
Retirement should be planned as carefully as recruitment
Organisations put considerable effort into bringing people into the workforce.
They advertise, interview, onboard, train and develop them.
Yet after 20, 30 or 40 years of service, the same employee may leave through a process lasting little more than a few weeks.
That is a missed opportunity for the organisation, the employee and the community.
Career Life Transitions’ Changing Gears™ program helps employees prepare for the practical and personal realities of life beyond full-time work. It also helps employers address succession, knowledge transfer, phased retirement and continuing contribution.
The goal is not to keep people working when they are ready to stop.
It is to provide choices.
A person may retire from a position, a roster or an organisation. They do not retire from their experience, capability or potential to contribute.
Leave A Comment