Fit and healthy 65-year-old men can expect to live to 88 and women longer still. By the time a man now starting his career reaches 65, he might expect to live until almost 100. Both company pension schemes and personal pensions have tumbled in value during the recession. Retiring at 65 or earlier no longer seems realistic for most of us. In 2006 the Government responded to the Pension Commission’s report by deciding to phase in a state pension age of 68 for both men and women, between 2024 and 2044. Employers will also need to dust down their performance management procedures to deal with ageing workers who hold out for a payoff, or sacked older staff who claim their dismissal was age-based. Businesses fearful of managing without retirement ages should take comfort that other countries have learnt to manage without them.
The Times