June 07, 2011
With just a few months to go until the controversial Default Retirement Age (DRA) is completely phased out, businesses are still eager to avoid any further accusations of age discrimination. After continued public pressure, the Government announced it would be completely removing the DRA and stop firms from forcing individuals into retirement at the age of 65 regardless of their personal circumstances as of October 1st. And according to a study conducted by XpertHR, more than two-thirds of 150 respondents indicated plan to allow workers the freedom to decide when they retire after the abolition of the DRA on October 1st. The XpertHR research follows on from a similar survey by the London Chamber of Commerce and Industry (LCCI) published this year, which suggested that some employers are ill-prepared to deal with the implications that the abolition of DRA will bring. 'Tackling the age-old problem of retirement' found that 57% of those surveyed are not prepared for the DRA and 26% did not feel well-informed about it, while 57% of respondents have not yet taken any action to deal effectively with the changes to the retirement age. Those employers unsure about what should be done before the DRA is shelved should seek legal advice now and avoid age discrimination claims in the future.