Retirement age review announced by government

14/07/2009

The government announced today that its investigation of current laws relating to the default retirement age will be brought forward.

Currently, workers can be sacked for age-related reasons when they are 65 years old or more.

However, around 1.3 million Brits choose to work beyond this age - a number which could yet increase due to the recession reducing people's pension pots and leading to rising rates of personal debts among older workers.

Under the government's new plans, the review of the default retirement age will now take place next year.

Originally, it was to be heard in 2011.

Pensions minister Angela Eagle said: "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 on what works for business and individuals."

Commenting on the move, the Trades Union Congress said: "We welcome the early review of the default retirement age.

"It cannot be right that an employer can sack someone simply for being too old. Employees should have choice - neither forced by employers to give up work, nor forced by inadequate pensions into working longer than they should."

Tags; Retirement Money Problems, Job loss,

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