Government plans to scrap the default retirement age from October 2011 are to be welcomed. Our sister charity Age UK estimates that around 100,000 older workers were pensioned off against their will in 2009 as employers used forced retirement as a shortcut to shed jobs. So potentially the new policy will contribute to an immediate reduction in the number of older people who find themselves unemployed.
However, this is only one measure. There is a lot more that government can do to meet the challenges of an ageing workforce and spiralling pensions costs.
Over the next 20 years, the UK will see an extra 3.6 million* over-50s in the ‘working age’ population, but as things stand, one-in-three people in that age group is out of work. Click for details
The cost of over-50s unemployment is currently £72 billion a year, and as this age group increases from being a quarter to a third of the workforce, there is risk that these costs will increase massively.
The Coalition’s proposed new Work Programme provides the opportunity to put in place carefully thought-through support that creates sustainable work solutions for older people, including self-employment.
Let’s hope the opportunity is taken.
USEFUL LINKS
BBC coverage of ending of fixed retirement age in UK has good case studies of people forced out early
Detailed coverage at our PRIME Business Club web site of the pros and cons and what small businesses that employ people have to do.
Give your opinion to BIS. The government’s consultation on this proposal is open till the end of October 2010.
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- Abolish the Default Retirement Age – yes, but older workers still need more help We’re pleased that the Government is pressing ahead with plans to abolish the Default Retirement Age...
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