Default retirement age scrapped

Friday, 14 January 2011 01:57

The default retirement age (DRA) will be scrapped, the Department for Business, Innovation and Skills has confirmed, with the legislation being phased out between April 6th and October 1st this year.

Under current rules, employers can force their staff to retire as soon as they reach 65, but the government claimed this should be abolished now that people are living longer.

Employment relations minister Edward Davey said older workers perform "an incredibly important role in the workplace", adding that the DRA is a form of age discrimination.

"Retirement should be a matter of choice rather than compulsion," he explained.

The move was welcomed by a number of organisations including Saga, with director general of the firm Dr Ros Altmann stating it should have been done "many years ago".

This will force employers to assess the capabilities of their older staff members, she added, rather than sacking them arbitrarily once they reach the retirement age.

Use the Myfinances.co.uk comparison site to find the best deal on pensions. 

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