The Government is to consult on the removal of the Default Retirement Age (currently 65). The proposal is designed to encourage people to work for longer and, if it is implemented, will remove the statutory retirement procedures. Pensions Minister Steve Webb has referred to the additional benefit for employees of receiving a better pension for retirement.

Although the intended abolition date is October 2011, the effect of this proposal if implemented will be seen as early as April 2011 as employers will no longer be able to issue any notifications for compulsory retirement using the statutory retirement procedure.

 

It will still be possible for employers to impose a compulsory retirement age provided that it can be objectively justified.