The ageing workforce is creating absence management issues for employers unaware of an exemption which can keep overall protection costs down, Group Risk Development (GRiD) has found.
The group risk trade body said 33% of employers have seen the average age of their workforce increase over the last year, following the abolition of the Default Retirement Age (DRA).
While three in five (59%) felt that the removal of the DRA meant they were more likely to recruit employees aged 50 and over, 27% have seen an increase in absence rates or age related health conditions, such as diabetes and arthritis, highlighting the potential risks of having an older workforce.
Yet 49% of respondents were still unaware of the exemption which can help keep overall protection costs down and give businesses more flexibility to retain these socially useful benefits.
Katharine Moxham, spokesperson for GRiD, commented: "The provision of insured protection benefits can legally cease at age 65 (or State Pension Age, as it increases) so, for those employers struggling with the challenge of managing the health and attendance of an older workforce, this exemption can be useful.
"Employers therefore have choice in their approach, ensuring that group risk protection benefits remain affordable and available to the majority of their employees."
One in four (23%) of the employers questioned felt that older workers were a store of knowledge, whilst 22% said they were more likely to be loyal to the company. A further 14% said that older employees had the ability to motivate other staff.
