Pensions  

Altmann backs CIPD view on postponing retirement

Altmann backs CIPD view on postponing retirement

Baroness (Ros) Altmann has warned that the UK will struggle to fill 1m jobs if employers do not encourage workers to postpone their retirement.

The new pensions minister said there were great challenges facing the economy, including the cost of supporting a growing pensioner population while employers lacked skilled workers.

Her comments followed the launch of a report from the Chartered Institute of Personnel and Development, which claimed that there were 9.4m workers in the UK over the age of 50, and that there was still a 64 per cent drop in the employment rate between the ages of 53 and 67.

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The 31-page report, Avoiding the Demographic Crunch: Labour Supply and the Ageing Workforce, said that unless employers improve how they recruit and retain older workers they will struggle to fill 1m jobs by 2035.

Baroness Altmann said: “The analysis in this report can help us understand the challenges that the next 20 years present much more clearly.

“I hope employers will remain open-minded to recruiting and training older staff, as well as considering the benefits of flexible working.

“This is important for older workers but it is also important for the future of our economy.”

Adviser view

Darren Cooke, a Derbyshire-based chartered financial planner with Red Circle Financial Planning, said: “We should be getting away from the idea of a fixed retirement age. The idea that we retire at 65 whatever happens has become obsolete.”

Email: damian.fantato@ft.com