Default Retirement Age (DRA) to be scrapped

The Government’s recent decision to scrap the Default Retirement Age (DRA) by October 2011 has resulted in divergent reactions. Older people who want to keep working beyond the age of 65 are of course overjoyed by the decision.

Many others are also in support of allowing such employees to keep their jobs, considering the DRA to be discriminatory.

Personnel groups were positive regarding the move, noting productivity would be boosted while employees would also have the freedom to control their career decisions.

The decision is believed to be beneficial for the financial and political sector, as continuing income tax receipts and longer working years would alleviate the much-reported burden on pension funds.

Business leaders on the other hand are not so positive. From the employer’s perspective, for example, future planning to date has relied on knowing when staff would step down. Taking this knowledge away creates complications within the business planning process.

Older workers who remain in their jobs may also face discrimination from their sector, to the effect that they are no longer able to perform as well as their younger counterparts.

In general, however, the move is based upon a recognition that older people bring not only efficiency, but also a large amount of experience and knowledge to their respective fields. Certainly this is deserving of respect.

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