Following the Government's announcement regarding incentives to push up the working age, the Institute of Directors (IoD) says more than 75% of its members are opposed to staff being ‘pensioned-off' at a certain age.
In a survey conducted by the NOP, a large portion of those questioned expect the average retirement age to go up over the coming twenty years, while only 20% feel the current retirement age will not change.
Miles Templeman, director general of the IoD , urges for flexibility in the pension system. Adding: “We all know that demographic changes will radically affect our pensions position. Abolishing a compulsory retirement age could certainly help in easing the problem.”
The IoD stresses equal importance to bumping up compulsory retirement age alongside a radical simplification of the entire pensions system, along with added employee and employer contributions and increased tax incentives for pensions funds.
Templeman says employers are keen to assist in the pensions crisis as a result of their responsibility to their staff, while also realising they ultimately find themselves in the same boat and will be equally affected as their employees by the system.
“Our research shows that two-thirds of directors are on the same pension scheme as their workforce,” Templeman adds.IFAonline
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