Do businesses fear an end to retirement age?

Some business owners could have anxieties over the new rules allowing people to work for as long as they want.

Yesterday (July 29th) the Department for Business, Innovation and Skills announced that it is to scrap the Default Retirement Age from October 2011.

Currently, employers can force staff to retire from the age of 65, but now that people are living longer and are healthier, the government has said that this should no longer be the case.

However, Helen Barnes, principal research fellow at the Institute for Employment Studies, reassured employers: "If you look at the people who work after the state pension age, they tend to do it for two or three years.

"The ones who work for another ten or 20 years are really quite unusual."

Ms Barnes added that there are some misconceptions about how anxious business owners are. She noted that physically-demanding jobs could have the right to retain the retirement age, but workers are unlikely to stay in the role anyway.

"I think it's much more self-limiting as a problem than is sometimes presumed."

Posted by Christopher Evans

Published on: July 30, 2010

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