EEF welcomes decision to set standard retirement age of 65

EEF, the manufacturers' organisation, has given a strong welcome to today’s announcement that the default retirement age is to be set at sixty five and reviewed after five years when the EU Directive on Age Discrimination is introduced in October 2006.

EEF recently published a survey together with Aon Consulting showing two thirds of manufacturers wanted a standard retirement age of 65 to be set. The survey also showed that, contrary to popular belief, many manufacturing companies are now employing some older workers. One in 4 companies already have some full-time employees over their company’s normal retirement age, which in the vast majority of cases was 65, and nearly a third of them had some part-time employees over 65.

Commenting on the announcement, EEF Deputy Director of Employment Policy, David Yeandle, said:

"This is a welcome decision which will help safeguard the competitive position of UK industry and enable manufacturers to plan their workforce requirements with a far greater degree of certainty."

"When it comes to the review of whether to maintain retirement ages, the government must take into account what our European competitors are doing and must not damage UK industry’s competitiveness."

Notes for editors

The survey of 528 companies was carried out in September 2004. It is the latest in a series of EEF/Aon Consulting Pensions Surveys that has been undertaken since 1998 on the views of EEF members on various pensions issues. The research examines the opinions of EEF members on a number of key pensions issues including employer/employee compulsion and retirement age.

The EU Directive on Age Discrimination must be implemented into UK legislation by 1 October 2006

EEF, the manufacturers' organisation, has a membership of over 6,000 manufacturing, engineering and technology-based businesses and represents the interests of manufacturing at all levels of government. Comprising 11 regional Associations, the Engineering Construction Industries Association (ECIA) and UK Steel, EEF is one of the UK's leading providers of business services in employment relations and employment law, health, safety and environment, manufacturing performance, and education and skills.

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