Forced retirement is a huge waste of resources, says expert

Date: 5th May 2010

Forcing older workers into retirement is having a "double negative" effect on the UK's economy.

This is the view of independent pensions expert Dr Ros Altmann, who said by forcing people to retire they will contribute less tax to the economy and have less money to spend on goods and services.

The comments follow the publication of a report by national charity Age UK, which revealed that forced retirement cost the UK £3.5 billion in lost economic output last year.

Dr Altmann, who is also a governor of the London School of Economics, said: "People are not old at 60 or 65 years anymore - we have made such amazing advances in healthcare, life expectancy, working practices and yet somehow retirement and pensions policy has failed to keep up with the new realities and is still trying to throw people out of work as if they are too old, which they are usually not."

Under current rules, the default retirement age is set at 65 years.

Posted by Jacob Williams