A recent study, conducted by Aviva, found that more than 6m over-50s currently in work, planned to retire later than they thought they would a decade ago, but more than two fifths of these same workers felt that their career ambitions were not being taken seriously by their employer.
These findings happen to coincide with a report from the CIPD, which found that employers faced a “supply shock” of staff, as significantly fewer EU nationals came to Britain looking for work.
According to this latest CIPD quarterly report, just 7,000 EU-born workers came to the UK between the first quarter of 2017 and 2018 compared to 148,000 the year before, representing a fall of 95pc!
With the looming uncertainty of Brexit and with European workers staying away, employers will now need to start looking at when the experienced staff they currently have retire or, perhaps more importantly, are ‘encouraged’ to retire. Many businesses do not have a contractual retirement age, but older staff are often ‘pushed’ to retire. For many people however, smaller savings pots and the ever-increasing direction of State Pension age, mean that retiring at a later age and, at a time that suits the individual, is becoming not just important but often vital.
There has been a trend over recent years for employers to let older workers go in favour of younger staff. This trend being driven by the need to renew and extend the longevity of the business with ‘younger blood’ and, this being harnessed with the (possibly higher priority) desire for a reduced wage cost.
Employers should value their current and experienced employees. A desired reduction in wage cost is not a real saving if the business suffers as a result of reduced experience.
This information is provided strictly for general consideration only. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned about the content hereof and any such action or inaction. Professional advice is necessary for every case.
Neil Dainton Dip PFS