Modern Australian
The Times Real Estate

.

Why mandatory retirement ages should be a thing of the past

  • Written by Alysia Blackham, Senior Lecturer in Law and ARC Discovery Early Career Research Fellow, University of Melbourne

Mandatory retirement ages are – rightly – mostly a thing of the past in Australia. But they still linger both formally and informally in some sectors and roles. This is of major concern for a country with an ageing population, such as Australia.

Compulsory retirement ages have been progressively prohibited in Australia since the 1990s. There are good reasons for this: reliance on irrational stereotypes about older workers can prevent businesses from finding the best person for the job. Allowing workers to choose when they retire can improve staff retention, increase workforce morale, and help employers retain vital skills and experience.

At a national level, prohibiting mandatory retirement can help relieve the burden of an ageing workforce on pension systems. It also promotes labour market supply and removes barriers to older people participating in society.

Read more: Keeping mature-age workers on the job

Abolishing mandatory retirement can reduce welfare expenditure and increase self-reliance. Importantly, it recognises the inherent worth and dignity of workers of all ages, and sends a strong national message about the importance of ending age discrimination.

Where mandatory retirement remains

Federal Australian judges must retire at the age of 70, as outlined in section 72 of the Australian Constitution. While section 72 does not generally apply to state or territory courts, all states and territories also impose a retirement age for their judges. These range between ages 65 and 72.

The Australian Defence Force has also maintained a mandatory retirement age of 60 for personnel and 65 for reservists, though this can be extended on a case-by-case basis.

Why mandatory retirement ages should be a thing of the past In Australia, federal court judges have a mandatory retirement age of 70. Shutterstock

Overseas, some countries still allow mandatory retirement. The UK, for example, allows employers to justify a mandatory retirement age for their workforce. The UK Supreme Court has identified two broad categories of legimitate justification: intergenerational fairness and dignity.

Retirement provisions have been retained by some UK universities, including Oxford and Cambridge. These organisations have claimed that retirement ages are justified by very low turnover, which may limit progression for other staff. They also cite the need to increase staff diversity, refresh the workforce, and facilitate succession planning.

Read more: How we could make the retirement system more sustainable

My research on how Australian universities are operating without mandatory retirement shows that there has been an increase in the number of academics working longer. The percentage of total academic staff at Australian universities aged over 64 increased from 0.96% in 1997 to 4.66% in 2012.

Extending academics’ working lives may be affecting the employment prospects of younger academics, particularly in relation to the availability of permanent academic posts at junior levels. Overall, though, there have been few negative impacts from the removal of mandatory retirement ages in universities.

I found Australian universities value the experience and skills of their older academic workforce, and explicitly reject any link between age and declining performance.

Judicial retirement ages

Even for the judiciary, mandatory retirement ages are outdated and inefficient. When they were introduced at the federal level in 1977, retirement ages were intended to “contemporise” the courts by introducing new people and ideas. They were designed to prevent declining performance on the bench and provide opportunities for younger judges.

But the workforce and our attitudes to older workers have changed since 1977. My research found that mandatory retirement ages for judges are inconsistent with modern workplace practices and are contrary to the desire for age equality. There is no evidence that older judges are “out of touch”, and age is a bad predictor of individual capacity.

Why mandatory retirement ages should be a thing of the past Mandatory retirement ages for judges run contrary to legal reforms designed to prevent age discrimination. Dan Peled/AAP

Instead, judicial retirement ages may deprive the courts of expertise and experience. Retirement ages also appear to be contrary to the wishes of judges themselves. Justice Graham Bell, who retired from the Family Court of Australia on 20 February 2015, was quoted as saying:

These days 70 is equal to 60 or 55. … Judges should be able to go on till 80 provided they pass a medical inspection. After all, the pension makes judges pretty expensive creatures in retirement. They are sent out to pasture too early.

What’s more, judicial retirement ages are largely unnecessary in practice. Judges are entitled to generous pensions and often retire of their own accord. New judges will still be given opportunities even if we remove mandatory retirement ages.

Informal retirement pressures

Where mandatory retirement has been officially removed, there can still be pressure to retire at a certain age. My research found that some Australian universities may be using potentially discriminatory methods (such as redundancy) to manage an ageing workforce.

A significant proportion of older Australian workers report experiencing age discrimination. In 2014, over a quarter (27%) of Australians aged 50 years and over reported experiencing age discrimination in employment in the last two years.

Given these findings, in 2016 the Australian Human Rights Commission (AHRC) conducted a national inquiry into discrimination against older workers. It recommended a suite of changes including discrimination law reforms and appointing a cabinet minister for longevity.

Read more: Age discrimination in the workplace happening to people as young as 45: study

Previous studies have suggested that declining numbers of older men in the workforce are mostly due to employer constraints, not constraints on the part of older workers. This suggests the need for a shift in employers’ attitudes towards older workers, to encourage continued participation.

Why mandatory retirement ages are inefficient

With an ageing population, Australia cannot afford to lose skilled workers prematurely. In 2013, the Productivity Commission estimated that overall labour supply per capita will fall by nearly 5% by 2059–60 due to demographic ageing. The commission concluded that:

A period of truly diminished outcomes is likely to be at hand, unless luck or appropriate policy initiatives intervene.

One of the key policy measures available to address this looming issue is to increase workforce participation rates for older workers. Eliminating the last vestiges of mandatory retirement is an obvious first step.

Authors: Alysia Blackham, Senior Lecturer in Law and ARC Discovery Early Career Research Fellow, University of Melbourne

Read more http://theconversation.com/why-mandatory-retirement-ages-should-be-a-thing-of-the-past-94484

The Best Nail Art for Short Nails

Short nails often get overlooked in the world of nail art, but they’re actually the perfect canvas for stylish, sophisticated designs. Whether you...

How Much Does a Skip Bin Cost? Skip Bin Prices, Sizes & What Influences the Price

Regardless of whether you're renovating a house. You are tidying up your backyard, or running a construction site. Chances are you'll require a skip...

Panoramic Elevators: Combining Functionality with Aesthetic Appeal

In the evolving world of building design, the demand for architectural features that are both practical and visually striking continues to rise. One...

No Dig, No Drama: Sydney Pipe Relining Explained

You know that feeling when water starts pooling where it shouldn't? Or received a quote for pipe repairs that made your eyes water? Let's chat about...

The SEO Benefits of AI-Optimized Landing Pages: Smarter Metadata, Faster Load Times

Landing pages are integral to the conversion funnel in digital marketing. Yet, when SEO works well to drive traffic to the landing page, it's just a...

How to Reduce Turbo Lag with an Upgraded Mazda BT-50 Exhaust System

Are you struggling with turbo lag affecting your driving experience?  Did you know upgrading your Mazda BT-50 exhaust system could be the key to u...

How to Segment Email Lists Based on Content Engagement (Not Just Demographics)

Email segmentation generally refers to age, location, gender demographic, and conventional elements. While this could be helpful information, it doe...

6 Qualities to Look for in Local Caravan Dealers

If you're searching for reliable caravan dealers in Campbellfield, it's essential to choose a dealer that offers quality products, excellent custome...

How to Repair a Faema Coffee Machine: A Practical Guide for Coffee Lovers

Introduction If you’re the proud owner of a Faema coffee machine, you already know that it’s more than just a kitchen appliance — it’s a vi...

Smart Health Decisions in Your 30s, 40s, and 50s: The Ultimate Prevention Guide

Making informed health decisions becomes increasingly important as we navigate through different life stages. What may have seemed unimportant in our ...

Sydney’s Electricians Helping Cut Business Costs

Running a business in Sydney isn’t cheap. Between rent, wages, equipment, insurance, and endless operational costs, it’s no wonder business owne...

Can Air Conditioning Help with Allergies and Asthma?

Living with allergies or asthma can make everyday environments feel challenging—especially during certain seasons or in homes where dust, pollen, ...

A Fast Charging Power Bank and Wireless Power Bank: The Future of Power Bank Technology

As the use of mobile devices grows, so does the demand for better, more efficient, faster, and more imaginative methods to power them. Previously re...

How to Extend the Lifespan of Your Power Bank: An Overview

Power banks are vital for ensuring your devices are powered while on the go, especially when on the move, outdoors, or during emergencies. They prov...

What is a Power Bank and How To Choose One

In a world filled with gadgets running out of battery is a real issue. This is where power banks can come in useful. They're portable, they hold pow...

Portable Chargers: How They Work & Essential Tips to Extend Battery Life

Portable chargers (also known as power banks) are essential accessories that keep your devices powered up while on the go — be it outdoor activiti...

How Artificial Tulip Displays Enhance Your Home’s Aesthetic

Artificial tulip displays have grown to be a common option for improving interior decor because of their exquisite look and long-lasting quality. Th...

The Psychology of Relationships: How Therapy Can Strengthen Bonds

Relationships require effort, understanding and communication. Couples and individuals can have better relationships with the assistance of therap...