Staff want employers to inform them of default retirement age changes

The majority (70%) of employees feel it is their employer’s responsibility to keep them informed of the government’s legislation on the default retirement age (DRA).

A report by Close Asset Management, which surveyed 2,000 UK employees, also found 20% would look to their employers for advice. 

The legislation, which will eliminate the default retirement age, was approved in January and will take effect from 1 October 2011.

Face-to-face financial education, such as workplace seminars, was thought to be the most effective way for employers to inform their employees of the changes, with 83% indicating this would be most beneficial for them.

The survey also highlighted 61% of staff are aware they would need further information about the new legislation before deciding whether they would work past 65 years. However, less than 6% feel satisfied with the information they have received on legislative changes. 

The vast majority (92%) say they have not received any information on the changes.

Jeanette Makings, director of financial education services at Close Asset Management, said: “Scrapping the default retirement age is a welcome change for those who can and want to work past 65 years.

“However, it has huge implications for those approaching this age group and for employers looking to manage their people resource and provide relevant support to their employees around these decisions. 

“The fact one in ten people will use the new laws as an excuse to save less and work more is extremely worrying and shows there is a real lack of understanding around retirement planning. 

“Whenever there is a change to workplace legislation, there is a period of adjustment for both employer and employee. Workers are looking to their employers for advice and guidance, which shows there is a real opportunity here for businesses to foster trust and engage with their staff.”

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