IoD pushes for retirement at 70

The Institute of Directors (IoD) will tell the government that the official retirement age must be raised to 70 to fund a rise in the basic state pension.

The lobby group will issue the warning as part of its submisssion to the government-appointed Pensions Commission, which reports this autumn.

But although an official pensionable age has to be set for financial reasons, the IoD will also call for a flexible approach to retirement.

Miles Templeman, IoD director-general, argues that if some workers wanted to continue beyond 70, it would have a significant impact on pension shortfalls and could even save up to 2% of Britain’s gross domestic product.

“The retirement age should not be rigid,” he told the Sunday Times.

“In Sweden, as the average rate of mortality rises, so does the pensionable age. This is more in line with the country’s pension needs and reflects the fact that we are living longer.”

Templeman said businesses must start thinking about how to accommodate older workers and employees’ attitudes must also change.

“The notion that your last job is also your most senior role is wrong,” he said. “Employers must think of those jobs that are less demanding in terms of time and energy for workers as they approach retirement.”

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