Dec
14
2010
Company umbrella contractors 'restricted by retirement age'
Posted by John Crawley
Reforming the default retirement age could benefit older umbrella company contractors, as it might give them a greater chance of finding work despite turning 65.
This is the view of Laith Khalaf, pensions analyst at Hargreaves Lansdown, who points out that currently, clients can terminate an employee's contract when they reach the retirement cut off.
Another problem with the current retirement age is that it cuts down on company umbrella contractors over the age of 65 having freedom to work, something which would not be as much a factor if the cut-off was abolished.
Mr Khalaf explained: "The abolition of the default retirement age will give workers greater rights in terms of working longer even though ultimately they may not be able to because of physical constraints."
The comments follow on from the Confederation of British Industry calling for the retirement age to be delayed to those with umbrella companies by a year.
Reforming the default retirement age could benefit older umbrella company contractors, as it might give them a greater chance of finding work despite turning 65.
This is the view of Laith Khalaf, pensions analyst at Hargreaves Lansdown, who points out that currently, clients can terminate an employee's contract when they reach the retirement cut off.
Another problem with the current retirement age is that it cuts down on company umbrella contractors over the age of 65 having freedom to work, something which would not be as much a factor if the cut-off was abolished.
Mr Khalaf explained: "The abolition of the default retirement age will give workers greater rights in terms of working longer even though ultimately they may not be able to because of physical constraints."
The comments follow on from the Confederation of British Industry calling for the retirement age to be delayed to those with umbrella companies by a year.