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Employment lawHR practice

More southerners planning to work past DRA than northerners

by Laura Chamberlain 20 Oct 2010
by Laura Chamberlain 20 Oct 2010

More southern workers plan to continue working after the default retirement age (DRA) than their northern counterparts, according to a report on ageing and retirement.

The fourth chapter of the Visions of Britain 2020 series, by financial services group Friends Provident, found that 55% of Londoners expect to continue working past the current retirement age, compared to 30% in Scotland and the North-East of England.

The Government consultation on the abolition of the DRA closes today. Under the proposals, the DRA will be scrapped from October 2011 and transitional arrangements will be put in place from 6 April next year.

Many of the respondents saw working for longer as a positive move, with 47% worrying that they may be bored when they stop working and 43% saying that they enjoyed the social contact that comes from being in a working environment.

Trevor Matthews, chief executive of Friends Provident, said: “People are living longer and this new breed of energetic and healthy individuals want to remain involved and not become economically inactive.”

The report also found some disparities between levels of pension savings in different parts of the UK. In London, 37% of respondents did not have a pension, compared to 30% in Scotland and the North of England, and 27% in the South.

Matthews added: “Employers can play a pivotal role in encouraging and supporting their employees to ensure their savings are on track to meet their retirement goals, especially as they reach their mid-50s and the prospect of retirement begins to take more significance in their thoughts.”

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If you are unsure about how changes to the DRA will affect your company, read Personnel Today’s 10-step guide for employers.








XpertHR FAQs on the default retirement age



  • What is the expected timetable for the abolition of the default retirement age?
  • Will there be transitional arrangements for the abolition of the default retirement age?
  • How will employers deal with retirement after the abolition of the default retirement age?
  • Will employers still be able to operate a compulsory retirement age after the abolition of the default retirement age?
  • Will anything replace the current statutory retirement procedure after the abolition of the default retirement age?

Laura Chamberlain

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