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Location: Scotland
Joined: Nov 2005
Posts: 19,298
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In my experience most working dogs retire with their handlers/owners and live the rest of their days as a pet.
However, I did know one retired police dog that was rehomed (to a very good home) through GSD Rescue. I have known a couple of sheepdogs who had to be retired from hill work but were still suited to lowland work and so they were rehomed to farmers/shepherds in a situation where the older dog could still work until he fully retired, and was then kept as a pet.