Employers are fighting back against CBI recommendations to raise the retirement age from 65 to 70 by 2030, but many are still discriminating against older workers says Croner.

A new survey by Croner HR has found that 85 per cent of respondents disagree with the CBI’s recommendations to increase the retirement age within the next 26 years. Nearly nine in ten believe that older workers shouldn’t be forced to work until they drop.

Employers are also recognising the benefits a greying workforce can bring. Croner’s Richard Smith says: “Even when age discrimination legislation comes in to force in two years it will have minimal impact on this unless employers’ attitudes change, but our survey reveals that an overwhelming majority are actually supporting more mature employees.”

New age discrimination regulations due to be introduced in 2006 will provide extra protection to older workers. The new laws will make it unlawful to dismiss an employee because of their age.

Smith warns: “Employers must not assume that 65 is the ‘default’ retirement age as there may be organisations where the normal retirement age is higher or lower. Even though age discrimination legislation is not yet in force, employers cannot simply dismiss employees when they reach ‘retirement age’, unless it is clearly stated in an employee’s contract that this is expected.”

Croner offers the following guidelines to help employers keep on the right side of the new laws:

• Don’t assume that employees expect to retire at 65. Many wish to continue to work beyond this age
• Look at the benefits older workers can bring in terms of skills, experience, attendance levels and maturity
• More mature employees may be less prone to ‘job hop’ and thereby reduce costs of retention and replacement
• Even if a number of redundancies are being made, age may not be a fair criteria to adopt for selection – although consideration for selection should be given to those who are past retirement age
• If it is felt that the employee is no longer capable of their work due to deteriorating health, ask them for a medical report and consider any reasonable adjustments that could be made to their current job to allow them to continue employment. If no adjustments can be made, alternative work or part-time work should also be considered
• Update all contracts of employment with the Company policy on retirement, which should include the age at which they will be expected to retire