Do Your Partners Have a Mandatory Retirement Age?

Source: The Managing Partner Advisor

In this blog entry, Gary Adamson discusses mandatory retirement. He is in favor of setting a mandatory retirement age to protect the firm and allow it to maintain control of retirement scenarios. Increasingly, firms are setting their mandatory retirement age as high as 65, and Adamson encourages firms to follow that pattern. At many national firms, the mandatory retirement age ranges from 58 to 62. Adamson argues that workers in their 60s are more active than they used to be and remain capable of contributing to the firm.

As for the actual retirement process, Adamson recommends that partners begin the transition toward retirement 18 to 24 months before the mandatory date. A successful transition of the retiring partner's clients enables the firm to pay the leaving partner's retirement benefits.

According to Adamson, if a partner is especially active and highly functioning, the firm can extend the mandatory retirement date if it chooses.

For the complete post, read “Why Should Your Partner Agreements Include a Mandatory Retirement Age?”

From The Managing Partner Advisor, the blog of Gary Adamson, CEO of Adamson Advisory, May 29, 2012, http://adamsonadvisory.com/blog.