Watchdogs and organisations are campaigning for the UK retirement age to be scrapped.

The Equality and Human Rights Commission (EHRC) has produced proposals to abolish the working retirement age – currently 65 – stating that if the age was even extended by just 18 months, the UK economy would benefit to the sum of £15 billion.

It is believed that by keeping older people in the workplace, the economy will benefit from lower welfare costs and also the increased spending power of the ‘grey pound’. EHRC research shows that around 25% of men and 64% of women plan to continue to work beyond the state pension age, with the majority citing ‘financial necessity’ as the reason for this.

Baroness Margaret Prosser, EHRC’s Deputy Chair, said: “This is about developing a way of working that is based on the demographics of today’s populations and moving away from systems established when people died not long after reaching state pension age and women were supported by their husbands.

“Britain has experienced a skills exodus during the recession and as the economy recovers we face a very real threat of not having enough workers – a problem that is further exacerbated by the skills lost by many older workers being forced to retire at 65.”

However, the EHRC cites structural barriers and outdated stereotypes as forcing people out of work early, something that is backed up by Age Concern.

According to the charity, unemployment among workers aged 50 plus increased over the last quarter by 4.2%. Andrew Harrop‚ Head of Public Policy for Age Concern and Help the Aged‚ said: “Research shows that once out of work‚ it is much harder for the over-50s to find a job again. Long periods of unemployment for older workers now will deny them the opportunity to build up a decent pension‚ making them more dependent on state benefits in retirement.”

The retirement age varies slightly in countries around the world. In the US, it is 66 years old, however around 20% work on until they are 69. France has the lowest retirement age, at 60, while the majority of countries stand at 65.

The proposals will be discussed today (Monday 25 January) by the House of Lords as an amendment to the Equality Bill.