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Employers have nothing to fear from the removal of the DRA

Employers have nothing to fear from the removal of the DRA says the Employers Forum on Age

The Governments response on the consultation of the phasing out of the default retirement age (DRA), published today, (Thursday 13th January) will see an end to forced retirement from October 2011. Rachel Krys, Campaign Director of leading age campaigners the Employers Forum on Age (EFA) commented:

Employers have been preparing for this change and many are realising the benefits it will have for both them and employees. Some employers have been successfully managing without forced retirement for a number of years, proving that organisations can thrive without retirement and become leaders in their sectors.

More than ever, UK employers need to retain their most talented people and manage those employees who are not performing. Clinging onto fixed retirement ages, waiting for someone to retire rather than managing them, is no longer an option. Business performance will improve when employees are used to their full potential, managed throughout their careers and not cast aside as they enter their 60s or encouraged to coast towards retirement.

A new approach to retirement which enables individuals to work as long as they are making a valuable contribution, and protects employers ability to provide insurance and benefits, is a pragmatic response to the increasing calls for change. Growing numbers want to and have to work beyond 65. Outdated policies which prevent this group working increase the burden on the already creaking state pension provision and ignores the fact that we are living longer and healthier lives. Employers without retirement ages experience a greater focus on performance, a reduction in recruitment costs and the retention of talent, whatever the age.


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