Scottish employers ‘not ready’ for older workforce

Scottish employers are not preparing for an ageing workforce, a JLT survey shows.

The government scrapped the default retirement age last year, meaning employers will no longer be able to force employees to retire at 65.

Coupled with ever-increasing life expectancy and rises in the state pension age, the average age of the UK working population is likely to edge steadily upwards over the coming years.

But the survey of about 250 companies found that half of Scottish respondents had no plans to adapt for an older workforce. In fact, only a third were reviewing or planning to review their reward strategy.

JLT Benefit Solutions in Scotland chairman Malcolm Paul (pictured) said employers needed to respond to an "open-ended workplace".

He said: "It is concerning to see our research indicating that, compared with their counterparts in England, Scottish employers appear less certain of, and therefore able to adapt to, an ageing employee workforce.

"The decline in defined benefit pension provision coupled with the abolition of mandatory retirement could result in a future without retirement for some of Scotland's 2 million workers; many will reach normal pension age and realise that they simply cannot afford to give up work completely."

Paul said the 131,838 workers aged between 60 and 64 in Scotland should be an "immediate concern" for employers as they may not retire when expected.