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Government plans to scrap default retirement age gets approval

Jonathan Winston Jonathan Winston
2 min read
This blog is more than 16 years old

New research has shown that almost three-quarters of people support plans by the government to scrap the default retirement age (DRA).

The survey, from the charity Age UK, found that 70% of those questioned thought it was wrong for employers to force people to retire when they reach a certain age and believed the employment law should be changed. The charity claimed that £3.5bn was wasted last year because of people forced out of companies when they reached 65 and said that people working beyond it can generate extra tax revenue and can reduce employers’ pension liabilities.

Michelle Mitchell, a director of Age UK said: “The default retirement age is a hugely unpopular law that 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.”

Steve Webb, the pensions manager has called the DRA an “anomaly” and said that it could be repealed sooner than originally suggested.

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