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The compulsory retirement age could be scrapped under radical plans to allow more people to work beyond 65, the Government announced today.
MPs were told the recession and the soaring elderly population forced ministers to rethink their approach.
The Department for Work and Pensions today confirmed it was bringing forward a review of the law in response to demographic changes that have seen the number of pensioners in Britain overtake the number of schoolchildren for the first time.
More than a million over-65s are in work but it is legal for employers to force staff out when they become eligible for their state pension. Age Concern and other charities have complained that Britain breaches older workers' human rights with its compulsory retirement law.
A 67-year-old solicitor, Leslie Seldon, is taking his firm Clarkson, Wright and Jakes to court over his sacking. He told an employment appeal tribunal that his claim was no less valid than those discriminated against on the grounds of race or sex.
Although regulations introduced in 2006 ban discrimination against an employee on grounds of age, they contain exemptions which allow workers to be dismissed without redundancy pay once they reach 65.
The review of the Default Retirement Age was planned for 2011 but following criticism pensions minister Angela Eagle today announced it would take place early next year.
She said: "We are at a demographic tipping point and today's strategy will build on foundations to equip the UK to meet the needs and aspirations of the future. It is time to look again at this. Some people prefer to take early retirement, others prefer to keep working. We want to give older people flexible retirement options.
"The Government is responding to the changed economic landscape. The different circumstances today - for businesses and for individuals coming up to retirement - suggest that an earlier review is appropriate. As Britain's demographics change, it is sensible that we have the debate. The retirement laws need to reflect modern social and economic circumstances."
Critics claim that there is a "cliff edge of retirement" that forces people to stop working whether they want to or not. Campaigners want reform, while ensuring that individuals remain entitled to a state pension at an agreed statutory age.
Rachel Krys, director of Employers Forum on Age, called for a change in attitudes towards obligatory retirement. "A mandatory retirement age of 65 is outdated, no good for individuals and no good for business," she said.
"As the population ages there is a clear economic case for keeping people in work longer, allowing individuals to fund their healthier, longer lives and keeping a tight rein on the dependency ratio."
In a further move to appeal to the grey vote, Ms Eagle announced plans to create a "granny card". The smart card would use technology similar to that on bus passes to give older people access to services such as libraries, leisure centres and sports clubs.
Reader views (1)
Whilst some people may have jobs that allow them to carry on beyond 65 the majority over ~45 find obtaining another job if they lose their's extremely difficult. Despite changes in the law ageism is rife! The review will, of course, be done by individuals on a final salary pension who will be offered good terms for early retirement in their mid-fifties! GET REAL!!!
- Man U Fan, London, 13/07/2009 18:31
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