View more on these topics

IOD says raise retirement age to 68

The Institute of Directors is calling on the Government to raise the default retirement age from 65 to 68.

Responding to the Department for Work and Pensions consultation into the future of the default retirement age, which closes today, the IOD says employers need the flexibility provided by the default retirement age but adds it must increase.

Regional chairman Chris Parkhouse says: “With more people wanting to work past 65 because they are living longer, healthier lives, we need to examine the UK’s existing retirement framework.

“But while it is the case that many people will be capable of doing their jobs past 65 and into their 70s, it is important the Government recognises this will not be possible for all employees in all job types.

“In some instances it simply will not be possible for employers to adapt jobs to suit older workers. And in small firms it may be completely impossible to redeploy older workers to suitable jobs. For these reasons, many employers will continue to need the flexibility provided by the default retirement age.

“But this does not mean that there is no scope for reform. We propose that the default retirement age is raised, initially to 68. Such a step would allowpeople to work longer, while ensuring that employers retain the flexibility they need to manage their workforces.”

Recommended

Axa exits enhanced annuities due to Solvency II fears

Axa is pulling out of the enhanced annuity market, claiming that Solvency II will red- uce the attractiveness of annuities for product providers and customers. Axa began piloting an enhanced product two years ago. The sector is dominated by Just Retirement, Partnership and Canada Life. Last week, Axa emailed advisers, stating that draft Solvency II […]

Is volatility dead? No, sell credit

There are several arguments that one could currently make for why credit markets look unattractive. These include signals that the US economy is in late cycle, the fact that corporate leverage has been increasing (with 2016 setting a record for the amount of global bond issuance), and that US high-yield default rates have risen considerably […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment