According to research carried out by the CIPD, an increasing number of employees expect to continue working beyond the age of 65. Of the 16,565 working adults surveyed, over a third of respondents were of the opinion that they will work past the traditional retirement age. Interestingly, the figure rose to 49% among workers over the age of 55. Furthermore, when it comes to the new widely anticipated retirement age, 70 is the new 65!
When quizzed as to why employees would want to remain in the workplace; staying mentally fit and earning sufficient income to enjoy life, including going on holidays, were the two most common responses. However, despite the 2011 eradication of the default retirement age and the recently launched government strategies to ‘retain, re-train and recruit older workers’; the CIPD study revealed a number of issues with regard to the general awareness of pension regulations and employers’ capacity to support maturing employees.
Pertaining to the awareness of pension regulation; over a quarter of respondents aged 55 or over were unaware that the state pension age will increase to 66 by 2020. Almost half of workers aged between 35 and 54 were similarly oblivious to the planned further age increase to 67 by 2028. In addition, 36% of the employees researched were unaware that they had to pay National Insurance contributions for 10 years in order to obtain a minimum state pension. Likewise, 32% did not know that 35 years’ contribution was required for a full state pension.
Rather damningly, only a quarter of respondents felt that their current employers were adequately equipped to support employees over the age of 65. The CIPD was keen to emphasise the importance of breaking down ‘organisational barriers’ preventing mature employees from thriving in the workplace. The CIPD elaborated on this point, stating that employers must re-evaluate their people management processes and working patterns to cater for older workers. Numerous benefits of a multi-generational workforce were also outlined, including the positive impact that highly experienced employees can have on their younger colleagues from a mentoring perspective.
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