The need to solve an age old dilemma - blog

clock

Now that the Civil Service has announced that it will scrap its retirement age from April 2010, we have a clear indication of intent for the Government's review of the Default Retirement Age (DRA), due early next year.

Continuing benefits for a longer time, or indefinitely, isn't particularly problematic if you're talking about "pay as you go" funding underwritten by the tax payer. However, for employers utilising insurance products to fund their liabilities - or for the insurers providing such products - it's a far more complex matter. Consider that under current regulations, the national DRA means that employers can currently require an employee to retire at age 65 provided certain procedures are followed. The Employment Equality (Age) Regulations 2006 commit employers to treat all staff equall...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Income

What next for the income drawdown 'class of 2015'?

What next for the income drawdown 'class of 2015'?

‘Advisers know that retirement planning does not stop at retirement’

Stephen Lowe
clock 28 March 2024 • 5 min read
Retirement income advice: FCA finds 'mixed picture' among case files

Retirement income advice: FCA finds 'mixed picture' among case files

Regulator published outcome of thematic review into retirement income advice

Jenna Brown
clock 20 March 2024 • 5 min read
FCA tells IFAs to review retirement income advice processes

FCA tells IFAs to review retirement income advice processes

Comes after regulator’s thematic review of retirement income advice

Jenna Brown
clock 20 March 2024 • 2 min read