Raising the retirement age for execs: Good or bad for business?

Stephen Grootes talks retirement age with Andrew Woodburn, MD of executive search firm Amrop Woodburn Mann.

Standard Bank Group's recent announcement that it's raising the retirement age for its executives has put the focus on whether having to retire at 60 is an outmoded concept.

This change forms part of its ongoing commitment to attracting, retaining, and nurturing top-tier talent, the Group said.

It reflects the evolving nature of executive leadership and the increasing value of experience, continuity, and institutional knowledge in driving long-term growth and innovation.

The move, effective from 1 January 2026, also aligns Standard Bank with prevailing practices to ensure that it 'remains competitive in the global and local talent market'.

The Group highlighted the value of experience, continuity, and institutional knowledge.

The question of whether people should retire at a certain age is a perennial one, remarks Amrop Woodburn Mann's Andrew Woodburn, but one that has intensified since the COVID-19 pandemic.

In the South African context, he also highlights what he terms 'brain drain 2.0' since the Zuma years. Along with that, people are living longer, exhibiting vitality and mental clarity for longer.

"My view is that our talent pool is shrinking... which means there's less to choose from, and succession is harder to get right."

Andrew Woodburn, MD - Amrop Woodburn Mann

"What we're seeing in the market actually is boards appointing individuals in fact who are well over 60 and so there's absolutely a trend now triggered by a number of different forces... in particular because the listed companies set the trend, appointing leadership with absolutely bulletproof track records of delivery...and financial pressure means a lot of leadership WOULD like to extend their working lives."

Andrew Woodburn, MD - Amrop Woodburn Mann

On the flip side of the coin, what does this mean for younger people coming up the ladder and their career planning?

In the end, it's all about the quality of appointments, says Woodburn.

"What's starting to happen, whether it's actually enlisted or entrepreneurial businesses they are looking to those individuals who're going to deliver and that covers the full pool - whether it's the white males over 60 or whether it's the younger millennials and black individuals coming up."

Andrew Woodburn, MD - Amrop Woodburn Mann

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