Age
According to Michelle Mitchell the director of Age UK Charity the Default Retirement Age is an obsolete concept which has no relevance in modern times. This policy tends to withdraw experienced workers from the industry which causes great harm. Not only do these workers bring their experience and skills to use here but they also pay higher taxes as long they can earn. As a result of having such productive people retire, the economy suffers. The workers are also deprived of their regular income, which is why 90% of them are strongly opposed to the idea of Default Retirement Age.
Mitchell said that it is about time that such archaic legislation was scrapped to ensure that the mature workers can contribute to the economy by using their considerable skill and experience.
All the three main political parties in the country have stated in their manifesto that they will bring some positive changes to the Default Retirement Age policy. However, none of them have given guarantees that forced old age retirement will be removed from the country.
Dr Ros Altmann, a governor of the London School of Economics and an independent pension’s expert has also supported the move for ending forced old age retirement. She said that it prohibits capable people from working even when they are willing. Their income goes down and therefore, they pay lesser taxes. Further, the purchasing power of such retirees is also restricted. All these factors cause the economy to be adversely affected too.
The CIPD Certificate in Employment Relations, Law and Practice provides a firm foundation in all the areas of HR and employment law; click on CIPD UK for a course which will help you understand how employment practice works within a personnel department.