As the government looks increasingly likely to get rid of the default retirement age for workers in the UK, it’s not only the ageing population that are beginning to worry about the implications. It is thought that four in ten will have to work six years longer than they originally hoped to because of an increasing pension deficit across the country. That’s according to research carried out by Aon Consulting and means that the average retiring age is likely to rise to 70. The costs for employers of providing benefits to an ever ageing workforce could go up significantly –some experts say it could be up to 20 percent.


There are a wide range of employee benefits, one of which is private health insurance. If the cost of premiums increases some companies may be forced to cancel their policy or look for a cheaper option. Cash plan private medical insurance is a much cheaper way for companies of providing private health cover for their staff and switching to this type of policy could make the savings that a business is looking for. Cancelling altogether may not be the best option for a company that has already reaped the benefits of private health cover and could end up costing them more money in the long term from staff sick days, less efficiency and productivity. It could also mean staff become less loyal and motivated to work hard if it seems to appear that their interests are not as at heart as they are used to.