Employees still pressured to retire by employers

A new study by insurer AXA has revealed that despite the introduction of age discrimination legislation in 2006, ageism is still rife in today's workplace, with thousands of retirees experiencing pressure to quit their job by their employers. In addition, UK plc could face a collective compensation bill of over £45 million if employers are taken to tribunal for age-related cases.

Research from AXA's international retirement scope survey shows that 60% of British retirees retired before the minimum legal age of 65. Whilst most did so through choice (80%), some 20% experienced pressure from their employer.

However, on the up side, the survey does show that age discrimination legislation is beginning to have an effect, albeit a slow one, with the number who've been forced into early retirement by their employer falling since 2006 (28%).

The research also shows that Brits are more likely to retire early through choice (48%) compared to the international average (36%). This is almost double the numbers that retired early in both France (23%) and India (25%). Workers in Canada (73%) and America (56%) meanwhile were the most likely to have retired early.

In addition, around half of those still working (47%) and those retired (49%) don't approve of raising the minimum age of retirement. However, since the study was last conducted in 2006, there has been an increase from 19% to 27% amongst retirees in favour of increasing the minimum age of retirement. This compares starkly with Japan and Hong Kong, where 70% and 71% of workers respectively approve of raising the retirement age.

British attitudes towards working post-retirement were mixed, with 51% of all workers expecting to work in retirement. The study indicates that only 11% take up a second job in retirement.

Steve Folkard, head of pensions and savings policy at AXA commented: "Employees coming up for retirement need to be aware of their legal rights and exercise these if necessary.

"Employers should also review their retirement policies and decision making processes to make sure they are protected against both future and retrospective claims. The cost of a successful claim can be significant and will be even higher when legal costs and damage to reputation are taken into account."

15 February 2008 © Moneyextra.com

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