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.