State pension age may rise to 70 - what does this mean for HR?

State pension age may rise to 70 - what does this mean for HR?

The age employees must work to may be increased again, following an official review that recommended pushing up the state pension age (SPA) – The Guardian reports.

The independent report suggested that the SPA should rise to 68 by 2039 – affecting the working lives of any employees in their late 30s and early 40s.

Furthermore, a separate report suggested that any employees aged under 30 could face an SPA of 70.

Tom McPhail, Head of Retirement Policy at investment firm Hargreaves Lansdown, told the publication: “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.”

Author of the independent report, John Cridland, former Director-General of the Confederation of British Industry, revealed that the main aim of this report was to give employees as much time as possible to prepare for the potential changes in retirement.

And whilst this news may not be too welcome for some employees, it does highlight the issue of the multi-generational workforce.

With staff working longer now than ever before, HR needs to be aware of the changes that an older workforce will have on the current status quo.

A report from Business in the Community revealed 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.

How do you think HR should future-proof for the multi-generational workforce? Tell us in the comments…

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