Removal Of Default Retirement Age Is Inevitable - Regardless Of Heyday Challenge Result

2 July 2008

Rachel Krys, Director at The Employers Forum on Age: "The Employers Forum on Age believes that the has to be a change in the way we currently approach retirement; a mandatory retirement age of 65 is outdated, no good for individuals and no good for business. As the population ages there is a clear economic case for keeping people in work longer, allowing individuals to fund their healthier, longer lives and keeping a tight reign on the dependency ratio.

The issue for employers is how make the huge changes necessary to achieve this shift. A fixed retirement age is considered by many to be essential for workforce and pension planning and some employers fear that they will have to continue to employ people who can no longer do the job. There is also confusion amongst employees who believe that having no retirement age will mean they won't be able to access their pension when they planned. In fact, there is no reason why someone can't claim their pension and continue working.

"The EFA is working with a growing number of employers who have removed retirement ages and they are finding it not only possible, but preferable. The change in policy has resulted in a much more flexible workforce with fewer skills shortages and none of the anticipated down sides. But the challenge in removing retirement ages should not be underestimated. It takes an overhaul of employment policies, a strong focus on performance management and a careful internal communications campaign.

"Whatever happens with the Heyday challenge being heard today by the ECJ, we are calling on the Government to set a workable timetable to removing retirement ages, giving employers at least two years to prepare and then working with employers to achieve a smooth transition. We firmly believe that it is inevitable that the default retirement age (DRA) will be removed altogether."

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For further information please contact:

The Employers Forum on Age
Rachel Krys: 020 7785 6556 - rachel.krys@efa.org.uk
Beth Vaughan: 020 7785 6539 - beth.vaughan@efa.org.uk
Catharine Pusey: 0207 785 6556 - catharine.pusey@efa.org.uk

Or

Lansons Communications
Helen Thomson: 0207 294 3604 - helent@lansons.com
Nicola Hussey: 0207 566 9718 - nicolah@lansons.com


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