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One Step Closer To Having Freedom To Work Past 65

23 September 2009

The High Court decision on the Heyday judicial review on retirement is anticipated in the next few days.

Responding to the news that the Government has decided to bring forward a review of the Default Retirement Age (DRA) Denise Keating, Chief Executive of leading age campaigners, Employers Forum on Age (EFA) said, "We are absolutely delighted that the Government has finally listened to reason and taken action to tackle an archaic system which allows the enforced retirement of people simply because of their age. 

"Every year thousands of people over 65 make huge contributions to the UK's economy and heritage, yet despite being capable of continuing in work, many more individuals are involuntarily retired at 65.  We believe that only short-sighted organisations would risk removing talented people just because a milestone birthday is approaching. 

"These economic times create an even more pressing imperative for the Government to move faster on this issue.  Pensioners need to work now because they have seen the financial crisis drain their pension value and as Britain becomes an ageing society, with huge demographic change, we are facing an even greater pensions' crisis which will affect all of us. 

"In an ageing society and as recession begins to bite, we can no longer afford a culture of early retirement.  It is vital that this anomaly in the age discrimination legislation is removed as it will help deliver the massive cultural shift which is needed to stop people being stereotyped by age."  

The EFA works with a number of employers, including B&Q, Hertfordshire County Council and the Department for Work and Pensions, who report that operating without the default retirement age has resulted in significant business benefits; filling skills gaps, keeping valuable members of their workforce, and having a better connection with their diverse customer base. 

What do businesses think?

A survey carried out in June 2009 by the EFA and The Age and Employment Network, of nearly 200 human resource management professionals undermines the argument that there are benefits to business when workers are forced to retire at 65.
Of those operating with a mandatory retirement age:

  • 64% of employers said that operating with a mandatory retirement age could lead to a loss of talent and knowledge to the organisation.
  • 37% also said that the National Default Retirement Age created risks from demographic factors - i.e. population ageing and the declining birth rate.
  • 45% considered it a lost opportunity to be an employer of choice among older and mid-life workers and
  • 30% were conscious of it having an adverse effect on their organisation's image.

Of the respondents who have no fixed retirement age the following benefits were identified:

  • 76% considered it kept valued people in the organisation
  • 85% said it maintained valuable skills within the organisation
  • 52% believed it had improved morale among employees
  • 52% said it has provided positive role models for younger employees
  • 44% said that it had Improved their company's customer facing image

The EFA has been campaigning for the removal of the default retirement age: for further information please visit: http://www.efa.org.uk/latest/campaigns.asp

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For more information, or to arrange an interview or to request a copy of the report, please contact the following:

Employers Forum on Age
Rachel Krys T: 07799 625 233 
E: rachel.krys@efa.org.uk

Denise Keating T: 07850 002 514
E: denise.keating@efa.org.uk

 

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