In a new report, The New Demographics: Reshaping the World of Work and Retirement, published by the Social Market Foundation, Lord Andrew Turnbull analyses a number of false assumptions which underlie our thinking about retirement and calls for a radical overhaul of employment and leadership models that will allow people to continue working past normal retirement age.
The report argues that current employment models, where a person retires at their most senior position and leaves the organisation completely, lack flexibility and are a result of widespread ageism in the workplace. Leadership models also suffer from a similar inflexibility with companies assuming they should continue to be led by their oldest employees.
The New Demographics suggests leadership models are adjusted so that business management is transferred to younger staff. Advisory or client-facing roles could then be created and flexible working models implemented, helping to break down ageism by demonstrating the advantages, such as preventing the loss of valuable skills, through retaining older staff.
For such flexible working to occur current pension schemes which offer incentives for early retirement need to be revised, with restrictions on how pensions are drawn whilst still working removed. The report argues that pension schemes should cut back the incentives offered for early retirement and offer true actuarial value for deferment.
See full Press Release.
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