In October 2011 the government is proposing to scrap the default retirement age and has launched a consultation process about scrapping the rule.

Currently employers are able to force an employee to retire at the age of 65 without paying any financial compensation but they must hold a meeting with the member of staff concerned to discuss their plans at least 6 months prior to their 65^th birthday.

 “Forced retirement makes you feel pretty rotten, as if you’re stuck on the shelf and put to one side”  said John White, 70, a retired postman.

Some campaigners are delighted with this news – Rachel Krys of the Employers Forum on Age said, it was “really unfair” that people had been forced out of jobs because of their age.  “We have to stop these blunt discriminators,” she added.

The charity Age UK, which has led the campaign to end the default retirement age, also welcomed the government’s plan.  “We have fought a four-year campaign to achieve this historic decision so Age UK is absolutely delighted that the government is finally setting a clear date for the abolition of this arbitrary and unfair law,” said Michelle Mitchell, Age UK charity director.  “Everybody stands to win from scrapping forced retirement. People over 65 will have full employment rights for the first time. The economy will benefit from older workers’ precious skills and experience and their increased buying power.

Benefits

For the Government – it will reduce the unemployment figures as there are many who would choose to work past 65 meaning more people filling jobs which might otherwise remain unfilled whilst also easing the burden on state pensions.

It will also give workers more freedom of choice. As people tend to live longer these days and are in better health overall, many people would actually prefer to remain active and continue to work for both the social interaction work provides and their desire to still contribute their skills to a particular job or career.

Perhaps a better reason is financial planning as many people find that only by continuing to remain in employment, be that full or part time, can they continue to maintain a reasonable standard of living and not simply to survive on a basic state pension.

We would recommend that people plan as early as possible so that they are able to retire comfortably and not just survive.