[platypus]

Interesting article on the BBC News website about the possiblity that businesses may be prevented from forcing people to retire at 65. It got me wondering about the situation in Australia and whether it's easy to work to any age or whether your employer can force you to leave.


BBC home editor Mark Easton said ministers had effectively signalled an end to the default retirement age.

The majority of people retire before 65, but 1.3 million people work beyond state pension age. Many more say they would if their employer permitted it.

The employers group the CBI said the move was "disappointing".

The review had been expected in 2011 but will now take place next year.

Ministers said they had brought the review forward to respond to changing demographic and economic circumstances.

Explaining the change in the timing of the review, Prime Minister Gordon Brown said: "Evidence suggests that allowing older people to continue working, unfettered by negative views about ageing, could be a big factor in the success of Britain's businesses and our future economic growth."

Economic recovery

The TUC welcomed the move, with general secretary Brendan Barder saying: "It cannot be right that an employer can sack someone simply for being too old.

"Employees should have choice - neither forced by employers to give up work, nor forced by inadequate pensions into working longer than they should."

However the business group, the CBI, said: "Having a default retirement age helps staff begin the process of deciding when it is right to retire, and helps firms plan ahead with more confidence."

It added that its research had suggested that 81% of those who asked their employer to keep working had been allowed to do so.

'Discriminatory'

Separately, the Court of Appeal will hear a legal challenge to the default retirement age this week in a case backed by the Equality and Human Rights Commission...........................




http://news.bbc.co.uk/1/hi/business/8148188.stm

[FamousFive]

Australia doesn't have any compulsory retirement age. You can work to whatever age you like. (I don't know whether you'll see that as good or bad. ;) )

The idea is that people will make a choice, depending on their circumstances, to retire somewhere between the ages of 55 and 70. In practice, tens of thousands of people keep working beyond the age of 70.

More recently, debate about the retirement age has been focused on the plan to increase the age to qualify for the Age Pension (http://www.centrelink.gov.au/internet/internet.nsf/payments/age_eligible.htm) from 65 to 67 by 2023. Demographics and increased lifespan make it inevitable I suppose, but most people here are still unhappy about it.

[platypus]

When I was in my 20s and early 30s I used to dream of retiring in my 40s or 50s. But now that I'm in my late 30s the idea of complete retirement just doesn't appeal any more. Some sort of part-time job that I enjoy and that keeps my brain active looks like a better prospect. I really need to get my house in order on the pension front so that when I'm an "old codger" I can work at something I enjoy through choice and not something I hate through necessity. I wonder how many of the 70+ year old Aussies are working because they need to, not because they want to?

[FamousFive]

I think the OECD will admire your commitment platypus. They think Australians need to work until they're older:

OECD says older Australians must be encouraged to extend their working lives

Older Australians must be encouraged to work longer, according to a new OECD report. The OECD projects that unless there is a substantial increase in labour force participation, especially among older people, Australia’s labour force will remain broadly stagnant over the next 50 years (Figure 1), while the proportion of the population in retirement will increase significantly. This could lead to rising labour shortages, a pronounced slowdown in economic growth and worsening public finances.

Recommendations for reform

• Facilitate later retirement while removing incentives to early retirement:

• Take further steps to prevent disability benefits being used as a pathway to early retirement: According to the OECD, the share of older Australians (especially men) obtaining a disability benefit is high relative to many other OECD countries.

• increase public awareness about their rights and responsibilities under existing legislation and to consider raising the penalty for engaging in age discrimination.

• Strengthen older workers’ employability: The OECD argues that training opportunities for older low-skilled and non-regular workers need to be improved. However, for this to be effective, it is important to also address the lack of motivation among these groups to participate in training.

http://i876.photobucket.com/albums/ab322/FamousFiveOz/olderworkers1.jpg

http://i876.photobucket.com/albums/ab322/FamousFiveOz/olderworkers2.jpg

http://www.oecd.org/dataoecd/61/4/38107362.pdf

[Heidi]

I love the graphs Famous Five. :) I don't like the idea of working till I'm 70.