Benchmarking retirement procedures: Employers oppose changes to default retirement age
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The Conservative-Liberal Democrat coalition Government plans to phase out the default retirement age, yet the majority of UK employers do not wish to see it changed or abolished, according to 2010 benchmarking research from IRS for XpertHR. Subscribers to XpertHR Benchmarking can drill down into the complete benchmarking data from this survey to find out how their organisation compares. XpertHR Benchmarking subscribers can access the complete benchmarking data on each key area by clicking on the link next to each key finding: |
- Three-quarters (74%) of employers have a defined contractual retirement age. Access benchmarking data.
- The most common reasons for having a contractual retirement age are because it is established practice, followed by workforce planning and linkage to pension benefits. Access benchmarking data.
- Contractual retirement ages are most commonly set at 65 - in line with the national default retirement age introduced by the Employment Equality (Age) Regulations, 2006. Access benchmarking data.
- Nearly three-quarters (72%) of employers say it would be best for their organisation if the default retirement age were neither abolished nor changed. Access benchmarking data.
- Reduced career development opportunities for younger employees and reduced
capability are among the potential disadvantages that employers perceive in
changing the default retirement age. Access benchmarking
data.
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- But employers also see potential advantages to changing the default retirement age, including the retention of experience, knowledge and skills. Access benchmarking data.
- More than two-thirds (69%) of employers say at least one employee has retired before the defined contractual retirement age over the past two years. Access benchmarking data.
- The median number of employees retiring before the default contractual retirement age was five. Access benchmarking data.
- Public sector organisations are almost twice as likely as those in the private sector to offer specific support to employees in the period leading up to retirement. Access benchmarking data.
I hope these links will help you get the most out of the benchmarking data from this survey. As ever, please get in touch if you have any queries about the XpertHR Benchmarking service.
Michael Carty, Benchmarking Editor
