The A-Team: Seeing Red

From April next year, the default age of 65, which allows employers to force workers to retire at 65, will be phased out over a six-month period.

What will this mean to the shipping industry, and to the working environment as a whole? Good question, but did you know that more than 1.4 million people already work beyond retirement age? No, neither did I before researching the facts. That’s 12.8% of the over-65s still in employment: an increase of over 4% in the last decade alone.

The baby-boomers (those born just after the end of the Second World War) now form a large part of the population, and together with the fact that, as a nation, we have never had a pension pot but have funded state pensions from the working population, will scrapping compulsory retirement not be a good thing?

A friend of mine, who is nearing 65 and running a sizable shipping company, said he would be working beyond 65, and that it wasn’t rocket science that he would make that choice. He is on his second marriage, with teenage children at university, and in his own words, his generation are materialistic – spending on the good life, not saving for retirement and definitely not in line for a final salary pension scheme. Why would he retire at 65?

People at different stages of their working lives have different views on the scrapping of the retirement age. When asking teenagers, the ambitious ones are all for retiring at 50, and those in their 20s are hoping they will be retired in their 60s. However, as I went up the age bands with retirement closer, opinion was definitely changing. Is that because youth gives a rose-tinted view of the future?

A recent survey of over 55s, by one of the leading pension providers, showed that two-thirds (68%) wanted to work past the standard retirement age. And with over 10 million over 65 now, and a predicted 18 million in 2050 – over a quarter of the population – should we not all be over the moon?

I have always championed older candidates to employers in the shipping industry, as they can offer a lot of skills in their chosen field, as well as life skills, and can add balance in a working environment. However, not all employers see these benefits. And it certainly isn’t good news for those entering the workplace or those looking for career development in their 40s and 50s, as they may find it frustrating, to say the least, as those who would have retired and create an opening, no longer will.

Mike Saunders, 72 years young and the MD of Wrinklies Direct recruitment service, which has been in operation since 1992, has seen a sizable increase in employers’ interest in his service in recent years. All ages of candidates are welcome to register, but, as the name implies, in the main, it is mainly older candidates that do. Mike, who works with Red on logistics requirements, welcomes the change in the law and sees it as a positive to be embraced. Many candidates at 65 find the retirement process almost like bereavement, getting very depressed, as well as having a deep sense of loss of self-worth.

The impact on the workforce in shipping will not be immediate. Like the decline of the export industry in the UK, it will be creeping, but unstoppable. The impact will be on those starting their careers, with fewer openings. Take graduates for example, with more than 60 applicants for one position in many cases. And those looking for career advancement will be forced to change companies to achieve this.

Will the aging of the working population have a knock-on effect on new developments within the shipping industry? There is a lack of experienced candidates, so it will increase the pool available to the sector, which is no bad thing. Solid experience, together with an in-depth knowledge of the industry, surely should be viewed as an invaluable asset?

With the changing landscape will undoubtedly come challenges that have not even been considered so far. When I was a teenager, a certain Scottish trade union leader used to visit and was none too impressed with retirees going back to work. His reasoning was that they worked far harder and were somewhat quicker than the main work force. In the main, they had less days off sick and were very conscientious.

I did question his reasoning on this and his answer was somewhat surprising to me at the time. He was fighting for better pay and didn’t want his workers shown up. I wonder what he would have made of the future work landscape. Sadly, he has passed away so I am unable to ask him. It would have been as heated a debate as it was all those years ago.

As the workplace horizon changes and the seven ages of man now become eight or even nine, we will need to realign our views, beliefs and reasoning behind hiring policies. In my opinion, this is no bad thing and by the very fact that 12.8% of over 65s are already still working, I am obviously not alone in that view.

Caroline Frostick is MD of Red Recruit                        www.redrecruit.com