Small businesses question default retirement age

60% of small businesses in the UK do not believe the government should dictate a default retirement age, according to a survey from the Federation of Small Businesses (FSB)

As it currently stands, women can be made redundant by their employer without pay when they reach 60, as can men at 65. However, this legislation has come under much debate recently after Equality Minister Harriet Harman stated that it is unfair.

Many people have voiced their concern that the current rules fail to take into account whether or not the person in question is actually able to continue their job or not. John Wright, National Chairman of the FSB, said that many small firms feel the same way:

“Many small business owners have no intention of putting in place a blanket policy to retire their staff at 65 – they understand the valuable contribution and skills that older workers bring to the business.”

Findings from the FSB also showed that nearly 80% of respondents do not currently use the default retirement age for their workers, while 9 out of 10 would be happily prepared to discuss flexible working hours for those approaching retirement age.

The Office for National Statistics (ONS) released figures this month showing that a massive 1.4 million people in the UK work beyond the age of 65. Harman has said that a review of the current default retirement age will be fast-tracked by the Government.