Employers could be missing out on prospective talent by not considering older recruits after studies showed the default retirement age has prevented one in five firms from offering jobs to those aged 65 or more.

The Chartered Institute of Personnel and Development (CIPD), which completed an online poll of 255 employers, is urging firms to address age discrimination in the workplace a year after age regulations were introduced.

Dianah Worman, diversity adviser at the CIPD, said: “The Government fought shy of taking the opportunity to abolish default retirement when the age regulations first came into force.

“Our research finds older workers generally perform better, are more loyal and reliable, and they have lower sickness absence rates than other jobless groups.

“At a time when firms continue to face recruitment difficulties, older workers are not a group that employers can afford to ignore.”