John Lewis to end lifetime staff perks as early retirement surges

According to The Telegraph, the retailer informed employees that they can anticipate changes to their benefits packages, including the scrapping of lifetime discount cards for those who retire after at least 15 years of service.

Under the new arrangement, more departing employees will have access to benefits, such as discounts at Waitrose supermarkets and John Lewis department stores. However, the “lifetime” discount cards for long-serving retirees will be replaced with benefits tied directly to length of service. 

The planned changes mean that from September, all staff leaving after more than 15 years of service will receive discount cards and access to partnership hotels for a period equivalent to their years of employment with the company. For example, someone retiring at age 65 after 20 years with the partnership would retain these perks until they reach 85.

In an internal memo, John Lewis indicated that this restructuring of benefits would not result in cost savings for the company and instead said: “Making this change also reflects the fact that retirement as a stage of life isn’t as clearly defined as it used to be, now being a much more individual decision – in terms of both how and when (and even how long) we decide to retire.”

The changes come as the number of Brits opting for early retirement surged following the pandemic. The share of 50-to-64-year-olds classed as economically inactive went from 25.2% before the pandemic to highs of 28%.

A spokesperson for the retailer said: “We’re changing our leavers’ benefits to enable us to more than double the number of our partners who are eligible.

“We’re incredibly proud of this package, which rewards loyalty and goes well beyond those offered by competitors.

“We’re also in a unique position of having an additional, dedicated fund for our council to spend to support partners and leavers, and are making sure this is spent with the best impact.”