The Commission claims the economy would be the ‘big winner' from the policy. Research from the National Institute of Economic and Social Research shows extending working lives by 18 months would inject £15 billion into the British economy.
The initiative coincides with the release of a new survey carried out for the Commission into older workers' aspirations, the barriers they face and potential solutions to these. The results show that the majority of this group believes major changes are needed to attitudes and policies if they are to reach their goals.
Twenty-four per cent of men and 64% of women say they plan to keep working beyond the state pension age and, according to the Commission, most older employees do not want to slow down, many want job promotions and others wish to work well beyond the state pension age.
But structural barriers and outdated stereotypes are forcing people out of work early. While Commission research shows employers are offering lower-level, part-time work to over-50 year olds, twice as many older workers want a job promotion compared with those that want to downshift.
Older workers told the Commission flexibility in hours and locations was crucial to keeping them in the workforce longer as they aimed to balance caring responsibilities and health needs with work; 85% of people not working and over the state pension age say greater availability of part-time or flexible jobs would help them gain a job.
Financial necessity is the most important reason to continue working. Many want to stay working for their current employers, pointing to an opportunity for employers to create a loyal workforce.
The policy, part of the Commission's Working Better initiative, aims to address the chronic under-employment, low-paid employment and low income experienced by older Britons.
The Commission will be working closely with employers to develop guidance for organisations to implement non-discriminatory recruitment practices.
The Commission believes these proposed changes will boost the economy, increase flexibility for employers and employees, improve the health of older workers, increase productivity and reduce the financial costs to Government in supporting older Britons***.
Margaret Prosser, deputy chair of the Equality and Human Rights Commission, said:
"This is about developing a way of working that is based on the demographics of today's populations and moving away from systems established when people died not long after reaching state pension age and women were supported by their husbands.
"Radical change is what older Britons are telling us needs to happen for them to stay in the workforce. Employers with a focus on recruiting and retaining older workers on flexible working arrangements are telling us it makes good business sense, allowing them to recruit and retain talent while meeting the flexible needs of their customers.
"Britain has experienced a skills exodus during the recession and as the economy recovers we face a very real threat of not having enough workers - a problem that is further exacerbated by the skills lost by many older workers being forced to retire at 65.
"Keeping older Britons healthy and in the workforce also benefits the economy more broadly by decreasing welfare costs and increasing the spending power of older Britons."
Audrey Williams, head of discrimination law at Eversheds, said: "A change to the default retirement age is on the cards for 2011 or soon after, even if the general election results in a change of Government. A ruling from the High Court last year means that legal provision allowing employers to force employees to retire against their wishes once they have reached age 65 is living on borrowed time. What we don't know is whether the default retirement age will be abolished completely or simply raised to, say, 70. Views on the implications of changing or removing the current retirement provisions are being sought currently by the Government."
And Denise Keating, chief executive of leading age campaigner, the Employers Forum on Age (EFA), added: "We have been campaigning against the default retirement age for many years, so are only too happy to see bodies like the EHRC join the fight and help us continue to highlight the UK's incredibly outdated retirement rules.
"Forcibly retiring someone because of their age is a discrimination that leaves many willing and able workers over 65 out of employment. Removal of the default retirement age is the only answer and we want the Government to commit to this.
"Britain has an ageing society and many of us will have over a third of our lives ahead of us when we collect our pensions. Crucially, it is important to address the fact that many pensions have failed due to the recession and the economy simply cannot afford to fund 20-plus years of retirement. We are all facing the prospect of several careers over a lifetime and employers have slowly started to realise that they can benefit from this. Recruiting someone in their 50s can mean benefiting from their years of training and experience already gained in the workplace."
