29th July 2010The CMI today responded to a government announcement to phase out the default retirement age.
Under the current system, employers can make staff retire aged 65, regardless of their circumstances. The government has, however, signalled that this will change because people are living longer and healthier lives.
Petra Wilton, CMI's director of policy and research, comments:
"The recession has forced many individuals to work until later in life due to financial pressures so the decision to remove an age barrier to working is a welcome one. In one stroke it means individuals can regain control of their lifestyle choices by allowing people to contribute to, rather than see themselves as a burden on, society.
The changes also ensure that those who want to,can continue to use their experience and skills, contributing to the success of UK businesses and economic growth. Our research shows that many managers will welcome this move to help them reap the benefits of experience without fearing that they have to force talented employees out the door just because one more birthday has been enjoyed"
Wilton's comments come in the wake of CMI's latest Economic Outlook report which revealed fears about the potential loss of skills and experience to the workplace and the impact of too much regulation. More than 1 in 3 respondents said that management skills shortages would affect their business and 55 per cent suggested that 'measures to reduce business regulation should be accelerated'.
Dods Parliamentary Communications Ltd
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