John Lewis to end lifetime staff perks as early retirement surges
What: John Lewis modernises employee benefits structure by linking post-retirement perks to years of service, doubling eligible staff numbers while adapting to evolving retirement patterns.
Why it is important: The restructuring demonstrates the retail sector's need to modernise legacy benefit systems while maintaining attractive employment packages in a changing labor market.
John Lewis Partnership is revising its employee benefits package, replacing lifetime discount cards for long-serving retirees with a duration-based system linked to years of service. Under the new scheme, effective from September, staff leaving after 15 years of service will receive discount cards and partnership hotel access for a period matching their length of employment. For example, a 20-year veteran retiring at 65 would retain benefits until age 85. The company emphasises this change isn't cost-driven but rather reflects evolving retirement patterns and modern career trajectories. The restructuring aims to double the number of eligible employees while maintaining competitive benefits that exceed industry standards. This shift comes amid broader changes in UK retirement trends, with post-pandemic data showing an increase in early retirement among 50-to-64-year-olds from 25.2% to 28%.
IADS Notes: John Lewis's revision of its retirement benefits reflects broader changes in retail employment strategy. According to The Retail Bulletin in March 2025 , the company achieved tripled profits while investing £114 million in staff pay, demonstrating a shift from traditional benefits to immediate compensation. The Financial Times' March 2025 coverage highlighted how this approach aligns with the company's £600 million investment in "self-funded" transformation, prioritising regular support over legacy perks. Drapers' March 2025 analysis revealed the company's strategic pivot to monthly staff support rather than annual bonuses, with shop staff receiving a 7% pay increase. This evolution in benefits is complemented by significant investment in workforce development, as shown in Drapers' February 2025 report of 5,000 apprenticeships across 30 different schemes, indicating a comprehensive approach to employee support. The modification of the lifetime discount card policy, while expanding overall eligibility, represents a modernisation of benefits to reflect contemporary retirement patterns, particularly as the share of early retirees aged 50-64 increased from 25.2% to 28% post-pandemic.
