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Concerns over DRA removal 'unfounded', research suggests

Concerns over the raising of the retirement age could be unfounded given the number of senior business positions currently held by those aged over 65, research suggests.

According to research from Creditsafe, which helps businesses manage their cash flow, there are already 360,000 directors in the UK over the age of 65, equating to 3% of the pensioner population.

Following the removal of the default retirement age, Creditsafe's analysis shows that pensionable directors are already demonstrating that they have much to offer UK Plcs and the business community as over 100,000 companies (4%) currently employ directors over the standard retirement age.

The research proves pensionable directors are also a desirable asset for new companies as 10,000 directors over 65 have been appointed to newly incorporated businesses in the last six months (3.5% of all new companies).

David Knowles, business development director at Creditsafe, expressed no concern for the next generation of pensioners: "To say that all today's workers want to work later, perhaps into their 70s, would be misguided. However there are strong signs that the businesspeople of Britain will have no problem coping with a delayed retirement.

"At the highest level, over 65s are showing their worth - one in thirty over the retirement age are not only active in business, but hold a directorship. This is by no means a legacy of past success; of directors growing old with their position, as almost the same proportion of new companies are making over 65s directors (3.5%)."

The average age of the top 20 billionaires for 2011 is 67.4, over two years above the state retirement ages for the UK and five about that of France.