Most SMEs Oppose Retirement at 65

More than three-quarters of small firms have called for the default retirement age to be scrapped as it puts pressure on mature workers to retire when they are not ready, the Federation of Small Businesses (FSB) has claimed. An FSB survey found that 80% of small businesses do not compel their employees to retire at 65, and 76% believe employees’ retirement should be based on a mutual agreement between them and their staff. “Small firms are known for employing people who are older, and continuing to employ them beyond the default retirement age,” said FSB spokeswoman, Sophie Kummer. “Having a default retirement age can put pressure on an employee who is perfectly capable to consider retiring when there is no need for it. “However, if the retirement age is scrap... »

Staff  Plans to Work Beyond Retirement Doubles

Staff Plans to Work Beyond Retirement Doubles

The number of workers planning to work beyond the state pension age has almost doubled in the past two years, research from the Chartered Institute of Personnel and Development (CIPD) has revealed. The CIPD’s Employee Outlook survey of 2,000 working people found that 71% of workers aged 55 and above said they have had to postpone their retirement plans — up from 40% two years ago. According to the research, the increase was largely due to financial factors, with nearly three quarters of over 55’s admitting that money worries had forced them to keep working. The survey found that pension pots, savings, investments and house values had all been badly affected by the recession. CIPD reward adviser, Charles Cotton, said that employers increasingly needed to think about adapti... »

Retirement at 65 could be scrapped in 2010

Businesses face the prospect of being unable to compel staff to retire at 65, after the Government brought forward plans to review the default retirement age. Under current retirement rules, employers can require staff to retire at 65 – although workers have the right to have requests to continue working considered by their employer. Businesses can also set their employee retirement age above or below 65, if a change can be justified. The Government was due to review the retirement age in 2011, but the economic climate and concern about pensions have prompted the Department for Work and Pensions to bring it forward to 2010. The Minister of State for Pensions and the Ageing Society, Angela Eagle, said: “The Government is responding to the changed economic landscape. The differen... »


Financial crisis delays Retirement

Small–business owners are being forced to shelve their retirement plans because of the deepening economic crisis, according to financial services firm Clifton Asset Management (CAM). CAM’s survey of more than 1,000 small–business owners revealed that 42% blamed the credit crisis for dealing a ‘major blow’ to their retirement prospects. The research also found that 40% said that their pensions and savings were their main concern, with an equal number saying that the bleak economic outlook had severely affected the likelihood of finding an interested buyer. CAM director Anthony Carty said: “The ongoing stock market turmoil and the bail–out of the banks will do nothing to calm people’s fears when they weigh up their retirement options in the com... »