Companies face retirement age confusion – CBI
BUSINESS leaders will today call on the Government to clarify the rules on retirement as it prepares to scrap compulsory retirement at 65 next April.
The CBI is warning firms face “huge uncertaintiy” if Ministers do not properly address the consequences of the scrapping of the default retirement age.
Director-general designate John Cridland said: “The ageing population and the shortfall in pension savings make it inevitable that people will want to continue working for longer. Employers understand this, and businesses value the skills, experience and loyalty that older workers bring.
“However, in certain jobs, especially physically-demanding ones, working beyond 65 is not going to be possible for everyone. The DRA has helped staff think about when it is right to retire, and has also enabled employers to plan more confidently for the future.
“With the scrapping of the DRA in April, a legislative void is opening up. We need to modernise our employment law framework to ensure that it is fit for purpose.”
The CBI is setting out a five point plan that includes delaying the change for a year, a simplification of employment law and the use of the state pension age as a limit beyond which employers do not have to provide occupational benefits.
