Default retirement age to be scrapped from October 2011

| July 29, 2010 | 0 Comments
Default retirement age to be scrapped from October 2011

A shake-up of the retirement system will see the default retirement age scrapped in the UK from October 2011.

Under new Government proposals to be unveiled later today, employers will no longer have the legal right to terminate the employment of a 65-year-old.

Charities such as Age UK and activists have welcomed the new proposals as a “victory” against ageism.

A recent survey conducted by charity, Age UK, found that two-thirds of people support plans to scrap the default retirement age.

The survey, which questioned more than 1,000 people, found 70% wanted to continue working beyond retirement.

Meanwhile, ministers also believe the new measures will help boost the economy. According to think tank, the National Institute of Economic and Social Research, extending working lives by an average of 18 months would earn Britain £15 billion.

Commenting on the proposals, employment relations minister, Ed Davey, said: “With more and more people wanting to extend their working lives, we should not stop them just because they have reached a particular age.

“We want to give individuals greater choice and are moving swiftly to end discrimination of this kind,” he added.

However, business group the CBI said the speed of the changes does not give companies enough time to prepare.

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