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UK retirement age under review

2:52pm GMT, Tuesday, 14 July 2009

The government has brought forward its review of the UK’s Default Retirement Age (DRA). The government has brought forward its review of the UK’s Default Retirement Age (DRA).

The UK Government intends to bring forward its review of the Default Retirement Age (DRA) by a year to 2010, which could potentially mean a higher DRA – or no age at all.

Currently, workers can be forced by employers to retire at the age of 65, however they can request to continue working – and, according to the Confederation of British Industry (CBI), 80% of those who request are able to continue working.

The government estimates that around 1.3 million over-65 year olds currently choose to work past the DRA, and that it is preparing for the “challenges ahead” considering pensioners now outnumber schoolchildren.

The decision to bring the review forward has not been welcomed by everyone. Katja Hall, CBI’s Director of HR Policy, said: “The Government said its review of the default retirement age would be in 2011, and now it has changed its mind. This is disappointing; especially at a time when so many businesses are under pressure.

“Having a default retirement age helps staff begin the process of deciding when it is right to retire, and helps firms plan ahead with more confidence. No-one has yet suggested a workable alternative to the DRA.”

However, Charlie Mullins, Managing Director of the UK’s largest independent plumbing firm, Pimlico Plumbers, said: “Of course older people should be allowed to continue working as long as they are capable. They should have the choice – why should they be forced to leave their job when they still have the desire, ability and drive to get to work and make a meaningful contribution?

“To force them to stop working just because of their age is nothing short of discrimination and contradicts the very law that was brought in to counteract that.”

To find out more, visit the Department for Work and Pensions’ website: http://www.dwp.gov.uk/

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