A REVIEW of the so-called default retirement age, which allows employers to require staff to retire at 65, is to be brought forward by a year.
Ministers had previously pledged to look again at the measure in 2011, but it will now be held next year to respond to “changing demographic and economic circumstances.”
Pensions minister, the Wallasey MP, Angela Eagle said most people retired before 65, with 1.3m choosing to work beyond state pension age, and many more saying they would work past 65 if their employer permitted it.
The minister said it was time to look again at the default retirement age, adding: “Some people prefer to take early retirement, others prefer to keep working. We want to give older people flexible retirement options.
“The Government is responding to the changed economic landscape. The different circumstances today – for businesses, and for individuals coming up to retirement – suggest that an earlier review is appropriate.”
TUC general secretary Brendan Barber welcomed the announcement, adding: “It cannot be right that an employer can sack someone simply for being too old. Employees should have choice – neither forced by employers to give up work, nor forced by inadequate pensions into working longer than they should.
“A key challenge is developing the right kind of jobs, support and training for older workers.”
