Earlier this week the Equality and Human Rights Commission revealed its proposals for fundamental changes to employment policies for older people and addressing the challenges of an ageing workforce.

These proposals include the removal of the default retirement age of 65, which the Commission argues forces many ‘able and willing’ people out of the workforce at an arbitrary age. The Commission is anxious to dispel the myth that people are ‘past it’ once they reach their 60s. And many older people support change in the workplace.  The Commission carried out a telephone poll of 1,500 people aged 50 to 75 to find out about their aspirations and the barriers they face and potential solutions.  Of those polled, 24% of men and 64% of women want to keep on working beyond State Pensions Age (to be equalised at age 65 by 2020, rising to age 68 by 2046).

Financial necessity is currently the most important reason to stay in work longer or about half of the people aged 50 – 59 (falling to a third of people aged 60 - 64).  As people live longer they need to build up enough savings to make sure they have a decent lifestyle in their retirement. But people want to have the choice to work in later years, not because they need to, but because they enjoy it. In fact 27% of people polled aged 65 or over gave enjoyment as their main reason for continuing to work.

Age UK will be further igniting the debate at their spring conference, Agenda for Later Life 2010, on 18 March.  Supported by AEGON, the conference will look at the key challenges ahead for older people and ask how experiences of later life should change by the end of the next decade. Leading politicians, policy thinkers and commentators will be giving their views on what lies ahead. You can book your place by clicking on the link above. 

The big question is where do we go from here? The government ‘call for evidence’ on current default retirement age practices closes on 1 February. Following on from this it will carry out a review of the default retirement age in late spring. The employer’s role will continue to be vital in helping their employees save for retirement, giving employees the flexibility to decide when they can afford to retire. So it’s important for the government to keep employers on side and address their concerns about the removal of the default retirement age to reach a practical workable solution.

Kate Smith