The European Court of Justice found that the Default Retirement Age (DFA) does not contravene the European Framework Directive on equal treatment. However the CIPD maintains that experienced and capable older workers are losing out by not having the choice of staying on in employment.
Mike Emmott, CIPD Employee Relations Adviser said: “Compulsory retirement ages can leave organisations blindly waving goodbye to valuable skills and experience. They do not just hit people at retirement age. They can lead to lazy management of workers for many years as older employees are filed by their managers under the ‘soon to retire’ category.”
A CIPD research report 'Future Demand for Working Among Older Workers' found that just under two-fifths (38%) of individuals intend to work beyond the age of 65, with most (68%) citing financial necessity as the main reason for staying on. A futher 31% of individuals would continue to work beyond retirement age if their employer allowed them to work flexibly.