The benefits of a default retirement age

At the outset it is important to state that workers over 65-years-old are often an invaluable resource of knowledge and experience, something sorely needed in business, particularly during these trying times. It is also worth asserting that there is no real evidence to suggest that all employers are culling their workforce at the default retirement age just because they can. The flexibility the current age regulations afford employers are a good thing, where business needs require it; and importantly where the worker wants to, there is scope for people to remain in the workplace. Where no such need exists employers can follow the retirement processes and allow workers to retire.

However, as part of a 'building society for all ages' strategy the default retirement age issue is to be reviewed in 2010, a year earlier than previously announced. In an ageing society this seems a reasonably sensible approach, but as ever it would appear that employers are going to have to bear the brunt of this. If workers remain in employment longer there will undoubtedly be additional costs in the pension and benefits arena and employers need to prepare for this.