SCRAPPING the default retirement age could lead to old workers staying on and fewer young people being able to take their vacancies, according to figures from Norton Rose, released ahead of a report set to be published on 3 October.
Almost half of respondents – 46 per cent – told the law firm the lack of mandatory retirement age will negatively impact their business, while 22 per cent confirmed they will have less capacity to take on younger workers.
Firms are reacting poorly to the changes, according to the firm.
“Employers are failing to negate the impact of the change on their ability to provide opportunities to younger workers. Too many are holding firm to rather blunt solutions – 19 per cent are singling out older employees to talk about retirement and 11 per cent are taking legal advice on whether they can simply force older employees out,” said Norton Rose’s Paul Griffin.
“If employers want to ensure they stay on the right side of the law when it comes to retirement without harming their ability to take on younger workers, they need to find more thoughtful solutions.”