Early retirement, flexibility, and more choice say UK Business Leaders

Over a third (38%) of UK business leaders plan to retire early

Only one in ten plan to continue working after their existing retirement date

Companies should allow employees to work beyond retirement say 59% of UK executives

Yet 16% of UK respondents support governmentsí raising retirement age

State pension provision for ageing population should increase according to just under half (43%) of UK business leaders

Companies should contribute more to employee pension pots say 28% of UK business leaders


These are just some of the many findings from the 12th UPS Europe Business Monitor (EBM XII), an annual survey of 1,452 senior business leaders from Europeís top 15,000 companies by revenue on a variety of issues impacting business, including changing business practices and work ethics across Europe.

Work, early rest and play

Despite the Governmentís Pensions Green Paper setting out plans to increase the retirement age of public sector workers, UK business leaders are adamant they would like to retire early.

UK executives top the league of those wanting to leave the rat race as soon as possible. When asked of their retirement plans, over a third (38%) say they plan to opt for early retirement; 32% say they would like to join them, but will probably need to work until the prescribed retirement age; and 16% say they will retire happily on reaching the prescribed age. Only one in ten UK executives intend to continue working past this retirement age.

However, British sentiment to retire as soon as possible was not echoed by other business leaders across Europe. Only 5% of business leaders from Italy, 7% from Spain and 10% from France said they planned to retire early.

The survey goes on to reveal that it is the Italians who plan to work as long as possible. More than a third (34%) of Italian executives plan to continue working after retirement age, which is more than three times the number of British executives planning to do the same.

Neil Taylor, Business Development Director, UPS comments:

ìReviews of future pension liabilities have taken place in all European member states and this yearís UPS Europe Business Monitor reveals that pension provision and retirement ages are increasingly important issues to business leaders across Europe.î

The UPS EBM XII goes on to reveal that early retirement is a dream that, unfortunately, will not always become a reality for many European business leaders.

Just under half (40%) of Spanish executives would like to join their UK peers in retiring early, but expect to have to work until their official retirement age. This sentiment is echoed across Europe, with executives from a number of countries revealing that they too would like to retire early, but will be forced to keep their hands on the steering wheel until the prescribed retirement age ñ France and Belgium (both 25%), Italy (23%), and Germany (20%).

Flexible retirement ages

Whilst early retirement may be one shared goal, flexibility is also central to the pensions and retirement debate.

When asked whether companies should allow employees to work beyond the standard retirement age, UK business executives along with their Dutch counterparts (60%) lead their EU colleagues, with 59% in support, compared with a European average of 40%.

A consensus is reached across Europe when addressing the rights of older workers to continue in employment beyond the statutory retirement age without financial penalty.

Two thirds (66%) of Europeís top business leaders believe that governments should not financially penalise older workers who wish to work beyond retirement age. This is a contentious issue in the UK, with industry leaders contemplating the impact of the Governmentís Green paper, but British executives (76%) are joined in this view by their Northern European neighbours: NL (80%), Germany (74%) and Belgium (74%).

Ageing Europe ñ who pays?

Europeís business leaders express a variety of views about the role of the government, companies and executives when debating how to support an ageing population across the continent.

According to just under a third of European respondents (31%), governments should set aside more treasury money to increase state pension provision. This view is supported by executives in Spain (55%), the UK (43%), the Netherlands and Belgium (both 35%) - all countries with welfare state traditions of differing degrees of generosity.

Fewer business leaders in all countries (an average of 20%) believe that companies ought to step in and ìmake goodî the state shortfall.

As the UK is among Europeís leaders in having the most funded private or company pension provision, this seems reflected in the opinion of UKís executives who are more amenable than the average European executive to the notion of increased company provision (28%). However, once again, business elite in Spain takes the lead on the issue, with just under half (45%) firm in their belief that companies should contribute more.

Raising the retirement age as a means of tackling the financial provision for an ageing population is not a popular choice. Less than a fifth (18%) of EU executives pledged support for this option. The most support is shown in Italy (27%) whereas in the UK - where retirement ages have been changed in the past and are currently under review - 16% of business leaders would like to see the retirement age raised.

Making the most of all ages

A significant proportion of European executives (37% overall), think there should be a ëcall to actioní to the business community across Europe to encourage companies to introduce active policies to employ older workers.

Once more, the UK takes a lead on this issue ñ over half of UK executives (54%) advocate the introduction of new policies, ahead of Germany (49%) and the Netherlands (43%).

Policies to recruit older people are less of an imperative for Mediterranean business leaders. Only a third (31%) of Spanish business leaders would actively encourage the introduction of such policies, joined by even fewer executives in France (25%) and Italy (24%).






1. The twelfth edition of the UPS Europe Business Monitor surveyed 1,452 business leaders from Europeís top 15,000 companies between September 16 and October 25, 2002. This survey is conducted annually.

2. Interviews were conducted in the following countries: Belgium (100), France (251), Germany (250), Italy (250), The Netherlands (100), Spain (250) and the UK (251). Respondents are at director level. The average annual revenue of the businesses interviewed is 1.66 billion euro (US$ 1.65 billion); their average employee size is 3,600. Interviewing was conducted in the respondentsí native language at the Taylor Nelson Sofres international telephone unit in London, UK.

3. The results of the very first edition of the Monitor were published in spring 1992, the second in autumn 1992, and then annually each autumn thereafter. All these results are available at a specially created website, www.ebm.ups.com. The results for the twelfth edition will be available online from January 2003.

4. The annual UPS Europe Business Monitor was founded by UPS in 1992 to provide a fresh view of business opinion throughout Europe. As the largest package and document delivery company in the world, delivering more than 13.6 million packages daily, UPS is a key facilitator of global trade. The results of the survey serve to provide UPS, its customers, and anyone else interested in economic information with an insight into the latest conditions, trends and obstacles predicted to influence businesses in Europe as they interact in the global market place.

UPS employs 360,000 employees throughout the world and in 2001 generated revenues of US$30.3 billion.