25 January 2010 by Sophie
We're very much of the opinion that it's not fair to force
someone into retirement just because it happens to be their 65th
birthday (not exactly the greatest present they'll ever receive, is
it? "Many happy returns - we're cutting off your income and you
won't have much to do from now on, at all. Have a great
day!").
Fairness doesn't always make for great business, but in this case
we think allowing older employees to carry on working can reap some
pretty lucrative benefits for small business owners. They're
already fully trained up in the role, have years of experience and
have all the skills that only decades spent in the working world
can bring. An 18-year-old replacement on minimum wage might be
cheaper, but they don't come with all that as part of the
package.
In a survey of more than 100 small business owners, 60% said they
were against a government-set default retirement age. The Federation of Small Businesses (FSB) research
found that, actually, almost 80% of small businesses already ignore
the state retirement age for their staff. 76% think retirement
'should be based on a mutual decision between the employee and
employer'.
That's a key point - the idea of the business owner and the
employee deciding together. Because most state-pension age staff
don't want to stop working. 62% of women over 50 and 59% of men
want to carry on working past retirement age, according to the Equality and Human Rights
Commission. And if they're willing, and it's helpful to small
businesses, who is the government to say it shouldn't be allowed?
Particularly when allowing the age-group to carry on working for
even just 18 months extra would add up to £15 bn to the economy
through taxes, as Equality and Human Rights Commission spokesperson
Andrea Murray told The Today Programme this morning.
Of course, if any of these talked-about proposals to push back or
abolish retirement age are pushed through, it's going to take a
while yet. In the meantime, we can suggest a pretty good path
forward for over-65-year-olds who have been forced out of work, or
even for those slightly younger who have been made redundant and
are struggling to find a new job (there's only a one in 10 chance of
reemployment once you're over the age of 50). We propose
starting a business.
With the wealth of experience, contacts and industry knowledge
accumulated over all those decades, you're in a prime position to
start a healthy business. Over-50s are more likely to get bank
funding for a new business than those younger than them, and their
startups have a greater chance of long-term success.
And you know what? If you run your own business you can carry on
working for as long as you like, and earn far more than a state
pension is going to provide for you. Look at turkey emperor Bernard
Matthews - only just now, at age 80, is he pulling back from the front line of his
company.
If you're nearing or at state retirement age, don't despair.
Starting a business is a lot safer and less daunting than it
sounds. In fact, more over-50s are starting up than ever before.
Read our feature on over-50
entrepreneurs for all the advice and insight you need,
and give entrepreneurship a go. Until the government's legislation
recognises how valuable this age group is to the UK's workforce,
you'll have to prove it yourself.