OUTLOOK & ANALYSIS

Mandatory Retirement Varies by Firm Size

Senior businesswoman holding portfolioPractices between “large” firms and smaller firms diverge.

By Marc Rosenberg
Retirements & Buyouts

As is the case with many aspects of practice management, mandatory retirement is addressed quite differently depending on the size of the firm. Here is data from a recent Rosenberg MAP Survey:

Percent of firms having mandatory retirement policies for partners:

  • 83 percent for firms with annual fees greater than $20 million.
  • 77 percent for firms in the $10 million-20 million range.
  • 56 percent for firms in the $2 million-10 million range.
  • 21 percent for firms with fees less than $2 million.

MORE ON RETIREMENT: Mandatory Retirement? 4 Reasons The Firm Comes First | How to Transition Clients from Retiring Partners | You Want Goodwill Payments? Give Proper Retirement Notice | Retirement Plan Funding? What Funding? | Vesting Can Cover Part-Timers, Too | Retirement Vesting: The Devil’s In the Details | Compromise Is In Order for Some Goodwill Payouts | When Retiring Partners Take a Specialty With Them | If Clients Leave, Do You Reduce Retirement Benefits?