Are you ready for the right to work after 65?

23.03.2011

It was revealed that only 16% of employers surveyed had started to make any provisions for the abolition of the default retirement age and only 24% agreed with the Government's plans.

Following the survey, DWF held an HR directors' forum in conjunction with the Employers Forum on Age. The forum, hosted in both Manchester and London, brought together a cross section of employers to discuss the results of survey and the implications of the default retirement age.

The forum overwhelmingly supported the Government's proposal to abolish the default retirement age.  The view was that employers will deal with each employee on a case by case basis - a consensual retirement policy will be adopted - working with employees to help create realistic solutions for working beyond 65.

The forum also found that strong performance management, applied consistently, was essential to managing the change in the default retirement age - backed with retirement planning and education given at the start of an employee's career.

Kirsty Rogers, head of employment at DWF said: "Employers might have real concerns about the default retirement age - but if they plan and prepare, the process of change can be well managed. Our forum recognised the abolition of the default retirement age is treated with a cautious optimism - employers might be worried about cost but they are embracing the opportunity for implementing flexible working practices."

The forum's concerns about pension arrangements were in line with the DWF survey - nearly two thirds of employers and professionals surveyed thought the change in law would lead to substantial changes to their staff pension arrangements and nine out of ten thought employees may lose benefits in kind as a result of the changes. The majority of employers had not reviewed their pension scheme rules, their death in service benefit (usually linked to their pension scheme) or their insurance-related benefits to establish the cost of providing these benefits to employees over the age of 65.  A lot of work will need to be done and the conclusion was that employers must take steps now to ensure they are ready.

John Ross of the Employers Forum on Age, who attended the forum said: "The default retirement age has been a real problem for employers across the UK and we are glad to see it go.  What employees need to recognisee is that the State will no longer pay for their retirement.  It is up to employers to put in place plans that ensure their staff can afford to retire whilst educating them on the importance of solid pension provision."

-Ends-

Notes to editors:

The Retirement Forum is made up of leading professionals in the industry including DWF's managing partner, Andrew Leaitherland and John Ross, head of business development at the Employers Forum on Age.

About DWF:

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Media Enquires to:

Alex Henshall or Fiona Whyatt

Bell Pottinger

Tel: 07920 252 464/ 07810 795053

Email: ahenshall@bellpottingernorth.co.uk or

fwhyatt@bellpottingernorth.co.uk