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Economics, government & businessLatest NewsDepartment for Work and Pensions

Default retirement age should stay according to majority of manufacturers

by Helen Gilbert 18 Nov 2009
by Helen Gilbert 18 Nov 2009

Manufacturers have called for the retention of the default retirement age of 65, a survey has revealed.

The study of nearly 500 employers showed more than two-thirds (65%) back the retention of the default retirement age of 65, the support slightly higher among large and medium-sized companies than in small firms.

The Consulting Employment Survey 2009, published by manufacturers’ organisation EEF and CPH Consulting, also showed that most requests by employees to postpone their retirement had been accepted by employers (84%).

In addition, just under half (47%) of employees who had reached age 65 in the past 12 months had asked to postpone their retirement and continue working.

David Yeandle, EEF head of employment policy said: “Manufacturers clearly want to retain a default retirement age that is linked to state pension age.

“Experience shows that the right for employees to request to continue working after 65 is enabling employers and employees to find mutually acceptable outcomes. This should be taken into account by the Government in its evidence-based review of the default retirement age of 65.”

Jerry Wright, managing director of CPH Consulting added: “Given the decline in pension and savings values in recent years, employees are now seeking the opportunity to extend their careers. It is, therefore, encouraging that many manufacturers, while being supportive of the default retirement age, are also adopting a flexible approach to staff requests to continue working beyond that time.”

In the summer, Personnel Today reported that government review of the default retirement age has been brought forward to next year.

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Helen Gilbert

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