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September 28, 2013 By Constance Hall Leave a Comment

Employers focus on ‘retiring’ older workers

 

One in four employers is retiring older workers who they would normally let work on because of concerns about keeping staff on after the default retirement age is scrapped.

Among the latest is Sheffield Teaching Hospitals NHS Foundation Trust, which has written to 203 staff aged over 65 to tell them their contracts would expire in October.

Letters were sent on March 31, a week before the default retirement age of 65 years old was abolished.

The trust said the decision was not taken lightly, particularly in light of the service given to the hospital by some of the employees who are being forced to retire, but added that they were following a policy where if a post was no longer required, the employee would automatically be retired.

450 older workers lose jobs

Meanwhile, a study of 157 organisations by The Age and Employment Network (TAEN) shows that 70% of employers will let retire when they wish.

But the the findings also highlighted a quarter of employers are targetting older employees in the transitional period before the default retirement age is finally abolished on October 1.

Including those losing their jobs in Sheffield, this affects around 450 employees in 42 private and public sector organisations.

Employers review retirement changes

The report also disclosed some other findings:

  • A third of employers have not decided post-default retirement age policy
  • Around one in four (38%) of employers are reviewing other policy areas for amendment as a result of retirement law changes
  • A quarter (23%) have reviewed or changed performance management and reviewed capability procedures, while 17% have reviewed pensions and benefits
  • 12% have reviewed or changed succession planning
  • At 31% of employers, managers discuss retirement plans with workers and 33% plan to introduce similar discussions.
  • 31% will train managers on how to discuss retirement plans with employees

TAEN is an independent, not-for-profit that monitors and campaigns for older workers’ rights.

Filed Under: Age - Diversity Strand, Disability-diversity strand Tagged With: Customer Service, diversity strands, Equality Act 2010, retirement

September 28, 2013 By Constance Hall Leave a Comment

UK Government plans to outlaw age discrimination

UK Government plans to outlaw age discrimination

Firms and organisations that offer goods and services based on age will have to revise their policies or risk breaking the law from April 2012.

Proposals put forward for consultation by the government ban unfair discrimination against someone because of age when providing goods and services.

The ban applies equally to the old and young – the rules will make refusing service to someone because they are 25 years old is just as unlawful as refusing service to someone who is aged 85.

The ban does not apply to children aged under 18.

Specific exceptions will let companies or organisations like councils offer beneficial services to certain age groups – for example, free bus travel for over-60s, or holidays aimed at people aged 30 and under.

Financial services firms, including insurance companies, can still use age when assessing risk and deciding prices, so long as they can show the decision is based on sound evidence and is not simply an arbitrary decision.
Insurers and brokers will also be asked to help people if they are unable to provide cover for age-related reasons by signposting other providers.

Time to end outdated stereotypes, says minister

Equalities Minister Lynne Featherstone said:“It’s high time we put an end to outdated stereotypes based on age and recognise the valuable contributions that people of all ages can make to our society and economy. When older people are turned away from the market place through unfair treatment, the economy misses out on increased business and revenue.

“These proposals will ensure that doesn’t happen, providing new protection and support for people of all ages. We don’t want to throw the baby out with the bathwater, which is why we will allow businesses to continue to provide the age-specific services that many people of all ages benefit from every day.”
Workplace age discrimination has been illegal since 2006.

Extending the ban to the provision of goods and services follows the announcement earlier this year that the government plans to phase out the default retirement age, which can be used to force people to retire at 65 even if they don’t want to.

The government is seeking views from people of all ages, as well as those working in relevant industries in a consultation running for three months before making the proposed ban a law.

The full proposals can be downloaded from the Government Equalities Office web site at http://www.equalities.gov.uk/

Do you want more than what Diversity Training can deliver? See Diversity at Work http://www.diversityleaders.org/our-services/training-a-events

Filed Under: Age - Diversity Strand Tagged With: age, retirement

September 28, 2013 By Constance Hall Leave a Comment

Will you still need me when I’m 64?

Will you still need me when I’m 64?

The answer to the question posed by The Beatles in their chart topping song seems to be a resounding yes more than 40 years after the lyrics were written.

It’s a fact more over 65s are working than a decade ago – and the number’s set to keep on rising as the default retirement age is scrapped and the first of the baby boomers hit that age milestone.

With a record 640,000 people reaching 65-years-old in the next year – instead of giving up work, many will swell the ranks of those who can’t or won’t kick the habit of a lifetime.

Of course, many people regarded their 65th birthday as a finishing line with a chequered flag. The time when they could finally kick off their shoes and relax without worrying about the boss.

For many, the government has picked up that line and pushed retirement further off towards the horizon.

The Office for National Statistics reveals that in the last three months of 2010, 270,000 full-time and 600,000 part-time workers were over-65.

That means 8.8% of the the age group are still toiling away compared with just 4.6% a decade ago.

As the baby boomers swell their ranks, in less than a year, Britain could see 10% of the population over 65 years old still working.

Not that there’s anything wrong with that. Retiring at 65 was always arbitrary anyway.

The story goes that when the retirement age was set in the USA in the 1930’s, half of the retirement schemes opted for 65 years old as the threshold and the rest had 70-years-old.

After much discussion, 65 years old was considered the most suitable retirement age. The baton was picked up by the Welfare State in Britain and successive governments have run with it until now.

As an aside, volunteer charity WRVS has produced research that shows over-65s inject almost £40 billion more in to the economy than they take out as state pensions, welfare and health services.

The return to society is more than financial, too, according to the WRVS, with 50% volunteering to help charitable organisations and 65% regularly help out elderly neighbours.

Do you want more than what Diversity Training can deliver? See Diversity at Work http://www.diversityleaders.org/our-services/training-a-events

Filed Under: Age - Diversity Strand Tagged With: age, retirement

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