News release

AXA

PR Department

AXA Centre

Brierley Furlong

Bristol

BS34 8SW

Telephone: 0117 989 5161

Fax: 0117 989 0725

One in five UK employees still pressured to retire by their employers

• ·         One in five (20 per cent) retirees have been forced out of their job by their employers
• ·         Nearly half of Brits (48 per cent) retire before the minimum legal requirement
• ·         Employers could face £45m*collective compensation bill for age-related discrimination claims

EMBARGOED UNTIL 00:01 Wednesday 13 February 2008

A study** by leading insurer AXA has today revealed that, despite the introduction of age discrimination legislation in 2006, ageism is still rife in today’s workplace, with thousands of retirees reporting experiencing pressure to quit their job by their employers. In addition, UK plc could face a collective compensation bill of over £45m* if employers are taken to tribunal for age-related cases.

Forced into retirement

Research from AXA’s international retirement scope survey reveals that three in five (60 per cent) British retirees retired before the minimum legal age of 65. Whilst most did so through choice (80 per cent), one in five (20 per cent) experienced pressure from their employer However, on the up side the survey does show that age discrimination legislation is beginning to have an effect, albeit a slow one, with the number who have been forced into early retirement by their employer falling since 2006 (28 per cent).

Steve Folkard, head of pensions and savings policy at AXA commented: “Despite legislation making it unlawful to discriminate against workers on the grounds of age, our study clearly shows that some employees are still being coerced into early retirement; meaning employers could be leaving themselves dangerously exposed to litigation.

“Employees coming up for retirement need to be aware of their legal rights and exercise these if necessary. Employers should also review their retirement policies and decision making processes to make sure they are protected against both future and retrospective claims. The cost of a successful claim can be significant and will be even higher when legal costs and damage to reputation are taken into account.”

Brits’ attitude to retirement

The research also shows that Brits are more likely to retire early through choice (48 per cent) compared to the international average (36 per cent). This is almost double the numbers that retired early in both France (23 per cent) and India (25 per cent). Workers in Canada (73 per cent) and America (56 per cent) were the most likely to have retired early.  

In addition, around half of those still working (47 per cent) and those retired (49 per cent) do not approve of raising the minimum age of retirement. However, since the study was last conducted in 2006, there has been an increase from 19 per cent to 27 per cent amongst retirees in favour of increasing the minimum age of retirement. This compares starkly with Japan and Hong Kong, where 70 per cent and 71 per cent of workers respectively approve of raising the retirement age.

British attitudes towards working post-retirement were mixed, with over half (51 per cent) of all workers expecting to work in retirement. However, the study shows that only one in ten (11per cent) take up a second job in retirement.

Steve Folkard continued: “The results suggest that Brits are reluctant to see the age of retirement raised, and a significant number have already retired early. It is interesting to note how many people think they will continue to work but subsequently do not; perhaps once they hit retirement they decide they want to make the most of their “golden years”.

-Ends-

Media enquiries:

Helene Barnes                                       AXA Life Press Office                 + 44 (0)117 989 5161

Francesca Pattison                                Lansons Communications           0207 490 8828

Laura Moss                                           Lansons Communications           0207 490 8828

Erica Gyulafia                                        Lansons Communications           0207 490 8828

Notes to editors:

*The now defunct DTI has predicted there will be around 5,250 age-related discrimination claims in 2007-08. The average claim awarded per claimant is £8,679, giving a total of £45,564,750.

**The research was conducted among a sample of 305 working people aged 25 and over and 301 retired or in early retirement aged under 75 across a sample of 26 countries. The telephone interviews were carried out between July 12 2007 and August 8 2007.

AXA

AXA UK is a part of the AXA Group. AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse geographically, with major operations in Western Europe, North America and the Asia/Pacific area. For full year 2006, IFRS revenues amounted to €79 billion and IFRS underlying earnings amounted to €4,010 million.  

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