AXA has today revealed that ageism is still rife in today’s workplace, with thousands of retirees having been put under pressure by their employers to quit their job. And UK plc could face a collective compensation bill of over £45m if employers are taken to tribunal for age-related cases.
Research from AXA’s international retirement scope survey reveals that three in five (60 per cent) of British retirees retired before the minimum legal age of 65. While most did so through choice (80 per cent), one in five (20 per cent) experienced pressure from their employer However, on the up side the survey does show that age discrimination legislation is beginning to have an effect, albeit a slow one, with the number who have been forced into early retirement by their employer falling since 2006 (28 per cent).
Steve Folkard, head of pensions and savings policy at AXA says:
‘Despite legislation making it unlawful to discriminate against workers on the grounds of age, our study clearly shows that some employees are still being coerced into early retirement; meaning employers could be leaving themselves dangerously exposed to litigation.’
‘Employees coming up for retirement need to be aware of their legal rights and exercise these if necessary. Employers should also review their retirement policies and decision-making processes to make sure they are protected against both future and retrospective claims. The cost of a successful claim can be significant and will be even higher when legal costs and damage to reputation are taken into account.’
The research also shows that Brits are more likely to retire early through choice (48 per cent) compared to the international average (36 per cent). This is almost double the numbers that retired early in both France (23 per cent) and India (25 per cent). Workers in Canada (73 per cent) and America (56 per cent) were the most likely to have retired early.
Folkard comments:
‘The results suggest that Brits are reluctant to see the age of retirement raised, and a significant number have already retired early. It is interesting to note how many people think they will continue to work but subsequently do not; perhaps once they hit retirement they decide they want to make the most of their “golden years”.‘
