Default retirement age will be scrapped this year

The change means that no one will be forced to retire just because they have reached 65 years of age.

The Department of Business say that this freedom to work should boost the UK economy and benefit individuals. It is hoped the move will help tackle the ageing population and the lack of money in pension funds.

Currently employers can force staff to retire at 65, and they had asked for a year’s delay to clarify the legal position.

Employment Relations Minister Edward Davey said: “Retirement should be a matter of choice.”

Thus, from 6 April until 1 October employers will not be able to compulsorily retire people who have reached 65 – unless they have been told prior to that date. However, after 1 October no one will be forced to retire at 65 using the DRA procedure.

Nevertheless, individual employers may still be able to retire people “providing that they can objectively justify it”.

The CBI voiced concerns over the change, saying firms faced “huge uncertainty” and that the law on unfair dismissal needed simplification.

CBI deputy director general John Cridland said: “The DRA has helped staff think about when it is right to retire, and has also enabled employers to plan more confidently for the future,” and he added, “In the majority of cases this will not be an issue, but in a minority it will be a serious problem for all concerned.”

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