02.06.11

Survey Finds Most Employers Will Let Employees Retire When They Want

The findings of the 2011 XpertHR retirement survey of 157 organisations show that, following the abolition of the default retirement age (DRA), seven out of ten employers intend to allow their employees to retire whenever they wish. 

Only one organisation said it would set an employer-justified retirement age, using succession planning as the legal justification.

A quarter of those surveyed, concerned about the change in the law on retirement, took the opportunity during the transitional period (prior to the scrapping of the DRA on 1 October) to retire employees whom they would previously have allowed to continue to working.  A total of 242 employees within 41 organisations were affected by this action.

Other findings included:

  • 32 per cent of respondents are as yet undecided as to the form their retirement policy will take;
  • 38 per cent of the organisations have been reviewing other policy areas that need amending as a result of the change in retirement law; and 
  • 23 per cent have reviewed or changed their performance management and capability procedures have been reviewed or changed at 23% of the organisations, pension and benefits at 17 per cent have reviewed or changed pension and benefits; and
  • 12 per cent have reviewed or changed succession planning;
  • At 31 per cent of organisations, line managers hold one-to-one discussions with individuals to discuss retirement plans and 33 per cent plan to introduce such discussions.
  • 31 per cent will be introducing training for line managers on how to discuss retirement plans with employees.
  • Share with