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Default retirement age should be abolished

More than two-thirds of people want to see the Government abolish the default retirement age (DRA) of 65.

Personnel Today have published results from a survey of 1,011 people which found that 70% think it is wrong to let employers make their staff stop working when they reach a set age.

Despite the Charity, Age UK urging the Government in todays Budget to set a date for the abolishment of the DRA to be April 2011, the Government’s stance remained unchanged.  Their pledge to “phase out” the DRA from April 2011 will remain.  Age UK think this is causing confusion as no clear date is set.

Age UK report that £3.5bn had been wasted in 2009 because tens of thousands of workers were forced to retire because they turned 65.

The Daily Telegraph have reported that Age UK believe that enabling people to stay in their jobs would create additional tax revenue for the government and reduces employers’ pensions liabilities.

Michelle Mitchell, charity director of Age UK, said: “The default retirement age is a hugely unpopular law which is well past its sell-by date.”

“Forcing people in later life out of the labour market when they want to work, save for their pensions and pay taxes is nonsense. It makes a mockery of the government’s plans to help people work longer.”

Current legislation gives employees due to retire an opportunity to request to work beyond their retirement age.  At Simple HR, we provide guidance to our Clients to help them manage this process and support those who have employees working past their retirement age.  We also ensure that all our Clients are up to date with any changes to UK legislation.  For further information please email: info@simplehr.co.uk

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