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Health barrier blocks later retirement target

NEWS

INDUSTRY pension scheme B&CE has warned that construction will have to make vast strides in occupational health to cope with Government plans to raise the retirement age to 68.

B&CE deputy chief executive John Jory said: 'At the moment the average age of retirement in the construction industry is 62, because people's bodies are simply not capable of carrying on. You can't all of a sudden expect them to work longer unless we start working on occupational health now.' Under Government plans, workers without a pension scheme will be automatically enrolled in a National Pensions scheme contributing 4 per cent of salary from 2012.

They can opt out of the scheme if they choose. Employers will contribute 3 per cent, with Government tax relief adding another 1 per cent.

Mr Jory said: 'We are in favour of auto-enrolment as a step below compulsion because at the moment workers have to fill in forms to start saving and it doesn't get done. People are far more likely to save if they have to opt out.' B&CE receives around 200,000 contributions every week but only 15 per cent of those are from individuals saving for themselves.