An FSB survey shows that nearly 80% of small firms said they do not use the default retirement age for their staff and 76% believe that retirement should be decided jointly by employer and employee.

Around 60% of small businesses employ staff over 50 years old and a quarter employ staff who are over 65, showing that small firms are flexible employers, said John Wright, FSB chairman.

However, the FSB wants legal provision to protect employers that need to retire staff whose ill health is threatening their levels of performance.