Employers Must Plan for Pensioner Workers
Published / Last Updated on 12/05/2008
Employers Must Plan for Pensioner Workers
Employers who continue to base their long-term pension plans on compulsory retirement aged 65 are running a risky strategy. As the law currently stands, employers can still refuse to employ a worker aged over 65, but it could change in the near future. Employees can request to continue working past age 65, but employers are within their rights to refuse.
Our view
There is an ongoing legal challenge that may result in compulsory retirement at age 65 being declared unlawful. Even if this does not happen, forcing retirement at 65 where the employee has a genuine financial need could be seen as unjust and unsympathetic.
It is risky for employers to base their long-term HR and pension strategy on the availability of compulsory retirement.
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