Stat of the Day: Actual versus Statutory EU retirement age
I got these charts from a BBC article entitled Fixed retirement age to be axed. The article says about UK government retirement planning:
The government is planning to scrap the default retirement age in the UK from October 2011.
Under the proposal, employers would not be allowed to dismiss staff because they had reached the age of 65.
Activists, who have long campaigned against the rule, welcomed the proposal as a "victory" against ageism.
Currently, an employer can force an employee to retire at the age of 65 without paying any financial compensation.
The only obligation on an employer is to hold a meeting with the member of staff to discuss plans at least six months before their 65th birthday.
Notice that Estonia, Lithuania and the UK are the only EU countries where the average retirement age ever exceeds the statutory age. On the whole, I think this is a good step by the British government. Why should I be forced into retirement at age 65? Isn’t that discrimination? Moreover, this will increase the amount of money available for pensions while decreasing the amount actually used.
The downside, particularly in this deep downturn, has to do with jobs for younger workers. All indications are that the cohort entering the labour market after the housing bust will suffer economically. And, the economic effects could lead to a ‘lost generation.‘
Also see related articles from the US:
- People Who Work After Retiring Enjoy Better Health, According To National Study
- Discouraged older job seekers give up, calling themselves retired – MSN Money
- The New Poor – The Economy Shifts, Leaving Some Behind – NYTimes.com
And this one written about this decision last July before the government’s decision was made: