Forced retirement to be scrapped

Workers will be allowed to continue in their jobs after the age of 65 under a Government pledge to scrap the ability of firms to force employees into retirement.

Employment relations minister Ed Davey announced the changes, which will prevent employers from legally forcing someone to retire at 65 as long as they follow certain procedures.

But business leaders have criticised the move, with the Institute of Directors claiming it is too rigid and does not allow companies to be flexible.

The change, welcomed by age campaigners, will gradually come into effect between April and October so businesses can make adjustments to human resources policies.

Other changes to the pension system include increasing the age of retirement to 66 and the legal requirement for companies to enrol their workers in pension schemes, which is likely to see employers reducing their contributions for existing members.

Michelle Mitchell, Charity Director of Age UK, commented: 

'The announcement that the Default Retirement Age will be scrapped this year with no further delays is great news for hundreds of thousands of older workers who could have seen their working lives abruptly ended by forced retirement. The Government deserves credit for sticking to its commitment to abolish this unfair legislation which stamps an arbitrary expiry date on the careers of many older employees and undermines their working rights.

'With people living longer and healthier lives retirement patterns are changing rapidly and employment regulations need to be brought in line with workers’ legitimate aspirations. Scrapping forced retirement is a very good start, but to lay the foundations of an age-friendly job market the Government also needs to tackle ageism in the workplace and offer more flexibility for older workers.'

Copyright Press Association 2011