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Anger increases over abolition of default retirement age

UK businesses are unhappy about the possible abolition of the default retirement age, with 70% of employers saying the abolition is not welcome, in a new study.

The research, by law firm Davies Arnold Cooper, found that employers’ concerns ranged from the potential performance of employees past 65 and what they would need to do in order to manage this, to having to terminate their employment on grounds of poor performance or capability.

Employers who took part in the survey also indicated they were concerned about the implications for workforce planning and the impact on development and promotion opportunities.

Meanwhile, HR directors showed only moderate support for the abolition of the retirement age. Although broadly supportive of the calls for the forced retirement at 65 to be scrapped, they said it should be on the condition that employers receive at least one year's notice of the abolition.

With the Government intent on getting the Equality Bill onto the statute books before the general election, HR professionals called for the removal of the default retirement age to be delayed to enable employers to adjust their policies and workforce planning.

The Age and Employment Network dubbed the law ‘a draconian measure which should be repealed at the earliest possible moment.’

Chris Ball, the Network’s chief executive, said: ‘By 2065 Britain’s oldest person will be the first to reach 120. She is out there somewhere right now and if her employer is foolish enough to be applying the DRA, she will have just retired [now].

‘People are living longer, even into their 100s, and yet we are pushing them out of the door at the comparatively youthful age of 65. It makes no sense.’

In his blog Chris Ball writes that the default retirement age was legislation based on an overreaction: ‘The more you look at it, the clearer it seems that it was an unnecessary over–reaction to fears expressed largely by the CBI,’ he said.

02/02/10