New research predicting an increase in life expectancy emphasises the need for the abolition of mandatory retirement ages, according to the Chartered Institute of Personnel and Development (CIPD).
The life expectancy of men who are 65 may rise by another three years during the next decade to nearly 90, research from the Continuous Mortality Investigations Bureau predicts.
Responding the to the figures, Charles Cotton, CIPD pensions adviser, said: “Many workers want to keep working beyond current retirement ages, albeit in many cases on reduced hours or in other, more flexible ways.
“In the future, we expect this trend to accelerate as people choose to extend their working lives in order to supplement their retirement incomes and maintain quality of life.
By kicking people out of the door because of their age, employers are also waving goodbye to experienced and talented workers, Cotton said.
“At a time when employers are struggling to recruit and retain workers with the skills and experience they need, this makes no business sense,” he said.
“With an ageing population, many firms are recognising that they need to recruit and retain older workers to ensure their workforce reflects the populations they serve.”
CIPD research shows that:
- The average cost of replacing a member of staff who leaves is around £4,500
- Workers over the age of 40 begin suffering age discrimination – something that will become illegal from October 2006
- Employers see older workers as, on average, more productive, reliable, committed and punctual than the rest of the workforce