What does a rise in state pension age mean for HR?
The Guardian has reported that the state pension age could be on the rise.
The newspaper reported that an independent review recently suggested that the state pension age should increase to 68 by 039. This would most likely extend the working life of employees in their late 30’s and early 40’s.
At the same time, another report has suggest raising the state pension age to 70. This would affect current employees under 30.
Tom McPhail, head of retirement policy at investment firm Hargreaves Lansdown told The Guardian, said: “This report is going to be particularly unwelcome for anyone in their early 40s, as they are now likely to see their state pension age pushed back another year. For those in their 30s and younger it reinforces the expectation of a state pension from age 70, which means an extra two years of work.”
For HR, this means that individuals will be working longer. This presents opportunities for individuals but could also affect the culture of a business. On the subject, HR Grapevine has stated that
‘…over one million people aged over fifty have been pushed out of the workplace involuntarily. Despite this, a report on the future of work by the UK Commission for Employment and Skills (UKCES) found that we could be experiencing a four-generation workforce by 2030.’
This brings about the question, aptly asked by HR Grapevine, how could HR future-proof policies for a multi-generational workforce?
To find out more about the rise in state pension age, read The Guardian’s article here.