A retirement letter is a formal notification to an employer detailing the employee’s intent to leave an organization and seek retirement benefits.
Even after expressing the decision to retire, an employee must draft and send a retirement letter to make it official. Since a retiring employee most likely has decades of experience, sending a retirement letter between 6 and 12 months before the intended departure date is crucial. This gives the employer ample time to seek a suitable replacement.
Retirement letters can be sent as formal or informal letters. Retirement letters sent as formal letters bear a professional tone and are usually presented on company letterhead with a rigid structure. On the other hand, retirement letters sent as informal letters have a more personal touch and a relaxed tone. The employee may share personal experiences and thank their employer for allowing them to work in their organization.
Retirement Letter Templates
You can download the following templates for free:
Statistical Insight: With the onset of the COVID-19 pandemic, the retirement rate of Baby Boomers has dramatically increased. In 2020, around 29 million baby boomers retired, an 11% increase from the previous year. Moreover, estimates predict that 75 million Baby Boomers will retire by 2030.
This article presents an informative guide on how to draft a retirement letter, along with important considerations. Retirement letter templates with preset placeholders to ease the drafting process are also provided, along with two sample letters.
Considerations Before Writing a Retirement Letter
The decision to retire is a monumental one. You have to be confident that your reason for retiring is well thought out and that your retirement benefits can be sufficient to sustain you.
Below are some considerations you should make before writing a retirement letter:
Research company’s retirement policy and benefits
Ascertain which retirement benefits you qualify for. Talk to your supervisor or hiring manager, as they should have this information. You may also review your employee handbook or employment contract.
Inform your employer verbally
Schedule a meeting with your supervisor to discuss your decision to retire. You can explain what drove you to the conclusion and give a tentative departure date. This allows your employer to plan for your exit.
Give enough notice
6 to 12 months’ notice should be enough for your employer to find a suitable replacement for your role. However, the notice period may vary depending on company policies. Nonetheless, give several months’ notice if you are in a senior position. You can give less notice if your role can be filled quickly.
What to Include in Your Retirement Letter
Since retirement signals a new phase of your life, you can be more expressive than usual. Nonetheless, formal letter guidelines must be followed.
Below is a step-by-step guide to guide you during the writing process:
Include the date of your retirement
Present the exact calendar date your retirement shall take effect. This should be the date you agreed upon when you informed your employer verbally about your decision. Your employer should know when your employment shall conclude to remit any pending payments promptly.
For example:
After much deliberation, I have decided to retire as Senior Accountant at Energon Lubricants on 23 November 2023.
Specify why you decided to retire
Express how much thought you have devoted to your decision to retire. Let your employer know that you have given your retirement decision considerable thought, as it directly impacts them as well.
For example:
This has been a difficult decision that I have devoted an enormous deal of thought to over the past several months. I wish to spend more time with my family and I believe now is the right time to take this step.
Express appreciation and gratitude
Thank your employer for the opportunities and support accorded to you during your tenure. This demonstrates your positive attitude towards your experiences at the organization. Do not mention any negative experiences you had. Expressing your gratitude helps maintain good relationships with your employer and colleagues.
For example:
I have been lucky to work with an exceptional group of professionals at Energon Lubricants. I am thankful for the support and guidance I have received during my time at Energon Lubricants.
Include details of your work history at the company
Mention the exact number of years you have worked at the organization and the positions you have held. Your hiring department may also require these details to process your retirement benefits.
You may also include your contributions and their overall impact on the success of the organization.
For example:
I am proud to have worked at Energon for 40 years. During my time here, I have had the opportunity to serve in various capacities, such as Sales Assistant, Sales Manager, Junior Accountant and Senior Accountant. My initiatives led to a 23% increase in sales and a streamlined accounting framework.
Include an offer to assist with the transition
Offer to help train your successor before you depart. This demonstrates your commitment to the organization’s success even after you leave.
For example:
I am ready to train and orient my successor in my role. I am also available for consultation during the transition period.
Write about your future plans
Give a brief highlight of your post-retirement plans. These provide context for your retirement and make it easier for your employer to understand your decision. They also help alleviate your employer’s concerns about your retirement and assure them you are not leaving for any negative reason.
For example:
As I look to the future, I plan to travel and spend more time with my family and friends. I also plan to volunteer in my community and explore new hobbies and interests.
Discuss options for part-time or consulting work
If you are open to continuing your engagement with the organization in some form, offer part-time or consultancy services to your employer. This should be discussed during your initial meeting and shall be a formal presentation.
For example:
I am open to the idea of continuing to work on a part-time basis. My experience and knowledge may be of value to the company. I would be happy to avail myself for consultancy if my input is required.
Include suggestions for the future
Share a few tips you believe your employer may benefit from. Share lessons you have learned during your tenure, give advice on various aspects of your duties or write a quote you have always loved.
For example:
As I depart, I recommend that Energon Lubricants expand its Marketing Department. A social media team can be hired on a contractual basis to gain a foothold in an untapped market.
Detail your needs regarding retirement
Specify the retirement benefits you expect after your departure. Mention your pension and any unused sick days for which you are eligible for reimbursement.
You may also request any healthcare and retirement benefits you are entitled to. Also, specify when and how you will receive your final salary.
For example:
Kindly process my pension and retirement benefits and see to it that my final pay and outstanding leave are paid accordingly. I would appreciate receiving my final salary by check.
End the letter on a positive note
You may be emotional, so maintain a light note and conclude your letter. It would be best if you ended positively to leave a good impression on your employer.
For example:
I will always hold the memories of my time here close to my heart and wish Energon Lubricants continued success.
Retirement Letter Samples
Sample 1
Sidney Harley
600 Beagle Run Rd.
Landrum, South Carolina (SC), 29356
(864) 457-2972
15 August 2023
Victor Ishkur
Human Resources Manager
Aslan Banking
127 Mallard Ct.
Greenwood, South Carolina (SC), 29649
(864) 229-1132
Dear Sir,
It is with an aching heart that I have decided to retire as a Branch Manager at Aslan Banking. My last day of work shall be 13 January 2024.
This has been a challenging decision. I have pondered over it extensively and conferred with my family before deciding to retire. Last year, I was diagnosed with brain cancer and cannot perform my duties to the best of my ability. I am forever grateful to you and Aslan Banking for the support I have received throughout my career. Your leadership and mentorship have profoundly impacted me, and I will always remember my time at Aslan Banking with fondness.
I have been with Aslan Banking for 40 years, starting as Sales Assistant and working my way up to Branch Manager. During my time here, I have worked on many exciting projects with a talented group of individuals. I understand a replacement has been found for my position and I am available to train and orient him.
As I depart, I want to devote time to my recovery and spend as much time as possible with my family. To quote Dr. Seuss, do not cry because it is over; smile because it happened.
I have filled the required retirement forms and expect that my retirement benefits be paid in due time. I would appreciate it if my final pay and unused sick leave days were paid by check.
Once again, I am grateful to have worked at Aslan Banking. I will cherish my memories here for the rest of my days.
Sincerely,
Sidney Harley
Sample 2
Jan Fletcher
989 Silverton Rd.
Ravenswood, West Virginia (WV), 26164
(304) 372-9855
3 June 2023
Tracy Rizwan
Senior Hiring Manager
Pearl Memorial Hospital
40 Ravenscroft Ln.
Hampton, West Virginia (WV), 23669
(757) 325-8345
Dear Madam,
After much reflection and discussion with my family, I have decided to retire as a Chief Legal Counsel at Pearl Memorial Hospital effective 12 November 2023.
After much deliberation, I have decided to start my practice and apply my legal expertise in other fields. The time is right for my family and I to make this move. I am grateful for the opportunities and experiences I have had while representing Pearl Memorial Hospital in a legal capacity. I truly appreciate the support and encouragement I have received from my colleagues and the valuable relationships I have built during my time here.
For 38 years, I have tendered to all the hospital’s legal needs. I started as an intern and was absorbed permanently as a paralegal. After ten years, I was made the Chief Legal Counsel, the position I currently hold. During my time here, I have represented Pearl Memorial Hospital in over 300 court cases.
I want to recommend Pamela Jones as my successor. She is an excellent lawyer and will be an outstanding Chief Legal Counsel. After my departure, I intend to start my law practice to continue utilizing my legal skills. However, I am available for consultation should you require my input on some issues.
I also wanted to request the retirement benefits I am eligible for upon departure. Kindly disburse my final pay, unpaid sick leave days and pension by direct deposit when I depart.
Once again, thank you for the honour of working at Pearl Memorial Hospital. I will miss the colleagues I have had the pleasure of working with dearly.
Sincerely,
Jan Fletcher
Important Considerations
Your retirement letter should be well-presented, so your employer can easily understand your decision.
Below are some fundamentals to consider while drafting your retirement letter:
Use a template
If the process outlined above seems complex, you may download a retirement letter template from this website and customize it as needed. Using a template can help you save time as the structure is already provided. It ensures you follow a consistent format, thus maintaining professionalism. A template also enables you to avoid common grammatical and punctual errors.
Deliver the letter
Hand in your retirement letter to your immediate superior. Delivering your retirement letter is the most professional way of letting your employer know about your retirement decision. It bears more of an impact than sending an email. For your retirement benefits to be processed, ensure you deliver a copy to the hiring manager as well.
Follow up
After you have submitted your retirement letter, follow up with your employer after a few days. Confirm that it has been received and properly filed. If not, send them an email or make a phone call. A follow-up also allows you to amend any errors while filing the relevant paperwork.
Statistical Insight: According to a survey by Gallups, the average retirement age in America is 66, even though the average American wishes to retire by 62. This is due to several reasons:
-Withdrawals from pension accounts are subject to penalties if you are below 59½.
-You can acquire benefits from Social Security as early as 62.
-You are only eligible for medical insurance if you are 65.
-Depending on your birth year, the Full Retirement Age (FRA) is between 66 and 67.
-If you have not taken your social security benefits, they increase by 8% annually between 67 and 70.
Conclusion
Retirement is a wonderful time to look forward to after decades of hard work. It is a time to unwind, explore, and spend time with family. To ensure a seamless transition and a strong relationship with your employer, you must notify them of your intention to retire early. Even though you will not see them daily, you never know how or when you may need them. Regardless of your position, be cordial in your resignation letter, clarify why you are retiring and be clear about whom you are addressing. Employers appreciate gratitude and will support you during your exit, and the last thing you want to do is leave on a sour note.
By drawing inspiration from the guidelines, resignation letter samples and templates in this article, you shall be able to preserve your professional network while you embark on the next adventure of your life.