A recent YouGov
poll for the Department for Work and Pensions (DWP) (the full results of which
can be found here)
showed that the main reason for continuing to work was ‘needing’ to earn money
(31%). This statistic resonates with our work with employers.
Since it has been unlawful to force people to retire
unless there are objectively justifiable reasons for doing so (age
discrimination), people continuing to work beyond traditional retirement age are becoming a primary consideration
for businesses when it comes to succession planning and the provision of
benefits.
The
fact that nearly half (49%) of those polled now think that they will retire
later than they thought they would goes to suggest that this issue is something
that is likely to gain momentum.
The
key questions from the employers we work with are: “how can our benefits
package accommodate the diversity of our workforce?” and “how do we pay
for it?”.
The cost of
employee benefits can escalate (sometimes rapidly) as
cover is provided beyond a traditional retirement age. As a result, many employers
utilise the exception to the principle of equal treatment on the grounds of age
for group risk insured benefits, while other employers continue to fund ongoing
insured benefits.
As the
responsibility appears to continue to shift from government to employer, and
then on to employees to fund benefits, it is likely that the use of flexible
(and voluntary) benefits will continue to grow at a pace.
Whatever the future holds, making sure that employees fully understand and appreciate the benefits on offer is key to an employer’s staff reward and commercial success.
Robin Watkins
Risk & Flexible Benefits Consultant
Telephone: +44 (0)20 7893 3456
Email: contactus [@] broadstone.co.uk
