Amid all the recent discussion about possibly abolishing the default pension age, support for the move comes from a surprising quarter – SMEs!
It is generally felt that the existing arrangement whereby businesses can require employees to retire when they reach the age of 65 favours employers, but it seems SMEs take a different view, adopting a more flexible approach to the issue.A recent survey by the Federation of Small Businesses found that SMEs value the skills and experience older workers bring to a business. Nearly two thirds employ staff over the age of 50, and a quarter employ staff over 65.
Significantly, almost eighty per cent of SMEs say they do not enforce the default retirement age, believing that retirement should be based on a mutual decision between employee and employer. Interestingly, 90 per cent say they would consider an employee going part time or switching to flexible working before thinking about retiring them.
These findings demonstrate the flexibility of the UK’s SME sector in adapting to the changing patterns of retirement and embracing the new realities of flexible working. It is this resilience that has helped many of them weather the recession, and hopefully will stand them in good stead as we move into recovery.
Tags: Government, SME, tax planning
