In an era where retirement norms are being redefined, a growing cohort of individuals in their sixties and beyond is choosing to extend their professional journey. According to recent data from the Centre for Aging Better, approximately one in nine individuals are now working past their 65th birthday, marking a significant shift from the one in 20 ratio observed in 2000.

While the decision to work longer brings a wealth of experience and knowledge, it also raises questions about employee benefits, particularly salary sacrifice schemes such as the Cycle to Work Scheme.

Green Commute Initiative (GCI), a trailblazing Cycle to Work Scheme provider, often faces inquiries about the eligibility of employees approaching retirement. The unequivocal answer is yes. GCI believes that individuals in this growing demographic should enjoy not only the scheme's tax savings but also the health and life benefits of cycling.

Confusion often stems from past experiences with traditional scheme providers using combined hire and salary sacrifice agreements, limiting options for both employers and departing employees. GCI, launched in 2016, uniquely decoupled these agreements, allowing them to run independently and between different parties. Consequently, changes to one agreement do not impact the other.

For employers, ensuring an adequate salary sacrifice period is crucial for employees nearing retirement to fulfill the agreement before leaving. Even if retirement is less than a year away, a minimum of three months of salary reductions allows the balance due to be deducted from the final gross salary payment, enabling significant tax savings through the scheme. Prudence is advised to avoid dropping the employee below the National Minimum Wage, and GCI can provide guidance on available options.

The hire agreement and subsequent loan agreement with GCI are unaffected by employment status, allowing employees to retire without concerns about this aspect of the scheme. GCI directly engages with the employee or ex-employee, requiring no interaction from the employer.

The older demographic of workers possesses invaluable experience and knowledge beneficial to employers and colleagues. Their expertise can play a crucial role in mentoring younger employees, providing guidance, and contributing to organizational success. HR leaders play a pivotal role in ensuring that benefits packages are inclusive, catering to both older and younger workers alike. The Cycle to Work Scheme emerges as a key player in fulfilling this inclusive requirement.