Pressure is building for employers to allow employees to remain in the workforce for longer and to put in place more flexible retirement policies. This has been driven by employees wanting to remain in the workforce and the Government indicating that it wants to see employers being more flexible in this area. Willis Towers Watson has worked with many companies in reviewing retirement age policy and developing innovative solutions that address the challenges faced by companies.
In line with this we have seen the State Pension Age increase from age 65 to 66 with further increases to age 67 and age 68 proposed. In light of these developments, employers are looking to review (their generally inflexible) retirement age policies to support those employees that wish to work beyond the traditional retirement age of 65. The Workplace Relations Commission has also released a Code or Practice for Longer Working setting out how companies should engage with employees as they approach retirement.
It is important that employers review their retirement age policy to ensure that they are well positioned to deal with any challenges from employees and changes in legislation.
We can help employers to work through the options available in this area, model the progression of the workforce if changes are made to retirement age, liaise with insurance companies to agree changes to death and disability insurance contracts and assist with member communications to ensure that any change is communicated positively.
