survey of the consultant’s ‘JLT 250 Club’ of employers also found that only one
third of Scottish business were either reviewing or planning to review their
reward strategy in light of the change. Scottish respondents account for
around 12% of the membership of the club, which is a consumer group of around
250 leading companies who complete surveys on pension issues.
chairman of JLT Benefit Solutions in Scotland, explained that the end of the
default retirement age meant businesses had to respond to an
open-ended workforce, where employees would often be able to work as long as
they are willing and able to do so.
‘It is therefore
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 aging employee workforce,’ he said.
from the perspective of reward strategy, Scottish employers need to give
consideration to the employee benefits that they will provide to their workers
who continue in service after normal pension age. Organisations need a policy
on the inevitable increase in demand for flexible retirement and the future
role of pensions and other benefits in succession planning.’
Mr Paul said
that the decline in defined benefit scheme provision, couple with the end of
mandatory retirement could mean some of Scotland’s two million workers face a
future without retirement as they reach normal pension age and realise they
cannot afford to give up work completely.
concern should be workers in the 60 to 64 age group; there are 131,838 such
individuals in Scotland (79,236 men and 52,512 women). This cohort may not
retire when employers expect them to and organisations need a policy on how
they will react to this reality,’ he added.