RBS malleable in retirement

Flexible retirement is seen as one of the best ways for employers to deal with upcoming pensions legislation. And the Royal Bank of Scotland made sure it got in on the act early. The bank brought in a flexible retirement policy last May. Although its normal retirement age is 60, staff can now continue working part-time after retirement, with no upper age limit for the scheme. Graeme Wyllie, pensions manager, said: "We are looking at an aging population and it would be foolish to ignore a proportion of the workforce simply because of their age." Under the new pensions rules staff will be able to carry on working part-time while drawing part of their company pension. With a tenth of RBS employees over 50, the firm was concerned about them leaving the workplace entirely at 60 and taking their experience with them. "We’ve been able to retain their skills in the workplace," he said. Since the initiative was introduced, the firm has received a deluge of applications from the over 50s. Wyllie added that a workforce with a wide age range was good for business because customers like dealing with people of a similar demographic. RBS also allows employees to reduce their working hours in the three months prior to retirement without any reduction of income or pension.