Parties Focus On Retirement As Election Nears
Retirement has become a major political battleground in the run up to the general election, according to Tom McPhail.
Following Harriet Harman’s call for an end to compulsory retirement, McPhail believes Westminster now sees retirement as a major issue.
On Monday, Equality Minister Harman claimed the ability for employers to force their workers to retire at age 65 was unfair, and announced the Government would fast-track a review of the default retirement age.
McPhail, who has been lobbying the Government and opposition parties in his role as chairman of the Pension Income Choice Association (PICA), says retirement is becoming a major political issue.
“It’s great to hear the Government is putting so much focus on retirement issues,” he says.
“The default retirement age has been due for a review for some time, as there is no legitimate reason to stop someone from working if they are still able to do their job.”
Aside from removing the default retirement age, Harman also suggested employers should be forced to be more accommodating to older workers, allowing them to work part-time or from home, similar to existing Government policy on working parents.
Independent pensions policy adviser, Dr Ros Altmann, says it is ‘about time’ politicians started addressing the needs of those approaching retirement, as they now make up the majority of voters.
“As millions of baby boomers come up for retirement, we should not just waste their talents and skills. They have so much to offer and employers should be encouraged or forced to recognise this,” she says.
John Lawson, head of pensions policy at Standard Life, says consumer research suggests many baby boomers do not want to retire at 65.
He says: “For this generation, rather than seeing retirement as a way of stopping work, two fifths want to continue to be involved at work but on their own terms.
“The fast-track review due to be announced today is very welcome news for the millions of people facing retirement, not because they want too, but because current legislation effectively forces them too.
“However, there also needs to be a realisation that for many people retirement remains a far off dream because of financial reasons.”
Other parties have yet to announce their retirement strategies, but are likely to set out their response to the Government’s review soon.
Last year, the Liberal Democrats claimed the state pension should be increased and compulsory retirement scrapped, while the Conservatives have called for an end to compulsory annutisation at age 75 and a review of public sector retirement.
A General Election is due this year, and must be held by early June, though it is widely expected to take place in May.
Tags: election, pensions, polictical, retirement