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Survey reveals employer`s response to the abolition of the default retirement age

05 October 2011 #Employment


After the Employment Equality (Repeal of Retirement Age Provisions) Regulations it is now no longer legally possible for employers to retire their employees automatically when they reach the age of 65.  If an employer wishes to retain compulsory retirement they must show that any retirement is objectively justified.

A survey of senior HR professionals, titled “A retirement revolution - Life after the default retirement age,” has recently been published by Norton Rose LLP.  The survey reveals that after the abolition of the default retirement age the majority of employers are doing without a default retirement age. Only three per cent intend to retain a default retirement age. Additionally, 22 per cent believe they now have less capacity to take on younger members of staff.

Other findings include:

  • 46 per cent of employers felt that the abolition of the default retirement age will have a negative impact on their business, making it harder to manage older employees out of the business.
  • 86 percent of employers are letting employees over the age of 65 continue in the same role.
  • Nearly half of employers are considering flexible working arrangements for over 65s.
  • Nearly half of employers who have changed how they discuss retirement with employees now wait for staff to bring up the issue, while a quarter now use their appraisal system.
  • 76 per cent of employers have not given line managers any additional training on retirement discussions.
  • Only 11 per cent of employers recognise the potential benefit of retaining experienced employees.
Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at employmentunit@clarkslegal.com by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.

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