More choice on when to stop working - default retirement age retired

The new plans allow for a six month transition from the existing regulations, following the announcement in the Budget that the DRA would be phased out from April 2011.

Currently employers can make staff retire at 65 regardless of their circumstances but this is set to change as people are living longer, healthier lives.

This measure is one of the steps Government is taking to help and encourage people to work for longer against the backdrop of demographic change. Others include reviewing when the state pension age should increase to 66 and re-establishing the link between earnings and the basic state pension.

The consultation also proposes to help employers by removing the administrative burden of statutory retirement procedures. With the DRA removed there is no reason to keep employees ‘right to request’ working beyond retirement or for employers to give them a minimum of six months notice of retirement.

Further information....