NEWS & EVENTS

Review of retirement age brought forward 

In a surprise announcement, the Government has confirmed that it is bringing the review of the default retirement age forward a year to 2010.

Currently employers can require staff to retire at 65, regardless of their circumstances although research shows that many workers, particularly as pension funds have shrunk over the last year, would like to have the option to work past this age.  In addition, the changing demographics of the workforce and ageing population has encouraged the Government to look at more flexible retirement arrangements for older people.

Speaking about the review, Phil Cookson of Peterborough based solicitors Roythorne Christmas said:

All signs are that the compulsory retirement age will be removed in the not too distant future.  Last week a committee reporting on the Equality Bill recommended that the clause confirming the retirement age should be scrapped, and now we have the bringing forward of the Government review.  Whilst any changes may be phased in, employers should be at the very least considering how this may affect the way their workforce is managed.

The compulsory retirement age was introduced in 2006 through Employment Equality Regulations.