Member News
6th April 2011
Ruth Spellman OBE, chief executive of the CMI, welcomes the abolition of the Default Retirement Age due to come into effect today.
The abolition of the Default Retirement Age marks a victory for those who are not content with downing the tools of their trade and settling into the arm chair of retirement just because they've reached a certain age. People are living longer and many workers resent being forced to retire when they are still healthy and active and making a valued contribution to the workforce.
There is a myriad of reasons why people might want to work longer and are choosing to stay on at work. Many people recognise that reaching 65 is no longer a signal of 'old age'. In these tough economic times, finance plays a key role in the decision making process, as does the emotive desire of maintaining current lifestyles. As people live longer, the need to top up their state pension also plays an important role in the decision and, of course, the pressures brought on by difficulties getting on to the housing ladder and the increased cost of education mean that many people need to keep working to support their dependents.
In light of these reasons for working longer, giving employees the freedom to make a decision on retirement age based on their own personal circumstances is essential. It will mean that those approaching 65 will feel valued in their roles, reducing the sense that they are heading for the employment scrapheap against their will.
We hope employers will recognise the incredible amount of skill and experience those who are approaching pension age can bring to their organisation.
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