Partner Article

Autumn Statement - pensions and elder workers a worry for business

The Chancellor’s confirmation that workers will have to take pensions later and work past 65 could have unintended consequences for firms, according business support consultants ELAS.

The Manchester based firm supplies support in employment law, HR and other areas to thousands of businesses across the UK.

ELAS consultant Andy Mills said:“It is not a coincidence that as it’s announced that the state pension age will be increased, employers are forced into the midst of automatic pension enrolment for their employees.

“The two measures combined appear to be the government’s way of combating the shortfall in public funds. Pension auto-enrolment staging started for the largest of employers in October 2012 and runs through to 2017 for businesses currently trading. Most workers will be automatically enrolled certain into a pension scheme. The principle behind the idea is for the workforce to be more self-reliant on retirement funds and to assist employees saving for their later years.

“Additionally the announcement could leave an aging workforce unable to retire and caught in a Catch 22 situation, too young to retire with no state pensions but feeling the strain of working in later life, especially those with more manual and strenuous jobs.

“Employees will be working way past what most would consider to be retirement age and this can pose problems for employers. Although the population is living longer, age can affect performance and work. There is a chance that mistakes may creep in and performance management becomes very prevalent, ill health could play a role in an aging workforce and employers need to be well equipped for the challenges ahead.”

This was posted in Bdaily's Members' News section by Simon Malia .