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'Serious social implications' after retirement age scrapped

09 August 2010

Employment specialists are warning that a ‘battle of the ages’ is looming, following the scrapping of the default retirement age of 65.

Although good news for employees, who can now choose when to stop working, national law firm Shoosmiths is warning of serious social implications, with a ‘lost generation’ of young people finding it almost impossible to get jobs.

 

Partner and national head of employment Kevin McCavish said: “The unattractive prospect of a ‘battle of the ages’ is looming in the workplace.”

 

With graduate unemployment at an all time high and young people finding it harder than ever to get on the jobs ladder, their chances will be even slimmer if older employees carry on working beyond 65-years-old.

 

McCavish said: “If employers can hang onto the skills of older workers for longer, they’ll clearly have less incentive to invest in and train new young recruits.

 

“Employers already recognise the significant benefits of an older workforce: better skills, more committed, and highly unlikely to require maternity leave.

 

“Given these factors, young workers risk being overlooked altogether.”

 

He added: “For those already in the workplace and towards the middle of the current working age spectrum, what incentive will they have to work hard and seek promotion if it’s now literally a case of ‘dead man’s shoes’ before they can make the upper echelons of a business?” 

 

Older employees are undoubtedly the winners from the announcement that the default retirement age will be abolished in October 2011.

 

“In an ideal world, the end of a universally accepted retirement age would lead to a cultural shift away from the ‘cliff-edge’ of retirement at 65, resulting in people working differently as they get older, for example doing fewer hours.

 

“It remains to be seen, however, how easy it will be for employers to accommodate such requests.

 

“With older workers now appearing to hold all the aces, the prospect of a ‘lost generation’ of young people is a real possibility.”

For further information please contact:
Name: Alastair Gray
Phone: 03700 86 4096
Email: alastair.gray@shoosmiths.co.uk

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