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Default Retirement Age- REC response

Following the announcement in this year’s Budget that the Default Retirement Age would be phased out from April 2011, Employment Relations Minister Edward Davey has today launched a consultation on how the changes will be implemented.

Commenting on the wider labour market implications of its phasing out, Tom Hadley, the REC's Director of External Relations, says:  

 “The desire - and in many cases, the need - to work longer has to be recognised. There are implications for succession planning within businesses and concerns have also been raised that the change could create a ‘bottle-neck’ for young job-seekers. 

 “We do not believe that this will necessarily be that case as there is no finite number of jobs. However, the fact that more people will be working longer makes it more important than ever for Government policy to drive a pro-active job creation agenda in order to enhance opportunities for workers of all ages. 

 “Societal changes to the way we live inevitably impact on the way we work. As well as choosing to stay longer in existing roles, older workers will also want to look at new opportunities. We can also expect those not currently in employment to pursue their job-searching for longer. Professional recruiters will play a key role here by helping older job-seekers access both temporary and permanent job opportunities wherever possible.”