The Employers Forum on Age (EFA) is urging the government to curb the threat of potentially prohibitive pension and insurance costs, which would penalise employers for recruiting and retaining older workers as the default retirement age (DRA) is phased out.

EFA campaign director Rachel Krys told Recruiter that her organisation had campaigned for an end to the DRA and that members were pleased that the government had taken the decision to do so.

However, EFA has made its case to government in the recent consultation on ending the DRA that life insurance must be capped and some insured benefits linked to state pension age in order to encourage employers to keep older employees in the workforce.

It might not be immediate but I think changing this mindset that people have a shelf life in work and therefore employing people in their late 50s will really help, long term, with the recruitment of older people RACHEL KRYS, EMPLOYERS FORUM ON AGE

“I think we’ve got to make sure this happens because this [ending the DRA] has to be a positive move for employers,” Krys said.

“I don’t speak for the government of course, but I hear nothing from the government that says they want to make life really difficult for employers to employ people.”

The question, she went on to say, is “what do we need to do to make it possible to encourage employers to keep people on?”

Krys predicted that ending the DRA will have “quite a significant effect” on the recruitment of older workers.

“It might not be immediate but I think changing this mindset - that there is a termination point, that people have a shelf life in work and starting to break down those assumptions and stereotypes - will really help, long term, with the recruitment of older people,” she said.

The EFA is an independent network of leading employers who recognise the need to attract and retain valuable employees whatever their age.