Default retirement age may be scrapped next year

Date: 29th July 2010

Britons may be able to work for as long as they want from next year onwards if proposals from the coalition government are implemented.

The Department for Business, Innovation and Skills has put forward plans to scrap the default retirement age from 2011 onwards.

At present, companies can ask staff to retire once they reach retirement age regardless of whether the employee wishes to continue working.

Under the new rules, which take into account the fact that people are living longer and healthier lives, this default age for retirement would be removed and workers would be free to decide how long they wish to stay in employment.

Edward Davey, the employment relations minister, 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.

"Older workers bring with them a wealth of talent and experience as employees and entrepreneurs. They have a vital contribution to make to our economic recovery and long-term prosperity."

The default retirement age is currently 60 years for women and 65 for men.

Posted by Emma Clarke