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The Government’s planned review of the default retirement age (DRA) has been brought forward a year to take place in 2010 to reflect the 'change in economic circumstances'.
According to the BBC, Gordon Brown, the prime minister, said: "Evidence suggests that allowing older people to continue working, unfettered by negative views about ageing, could be a big factor in the success of Britain's businesses and our future economic growth."
Pensions minister Angela Eagle said although employers can retire staff when they turn 65, 1.3m people choose to work beyond state pension age, and evidence suggests that as the value of pensions diminishes and life expectancy rises many more would work past 65 if were permitted.
The minister said it was time to look again at the default retirement age: "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 on what works for business and individuals. The retirement laws need to reflect modern social and economic circumstances."
As part of its strategy entitled: Building a Society for All Ages, the Government will now begin gathering evidence from stakeholders for the review.
Legal challenges
Earlier, a panel of judges heard that a legal challenge by a solicitor forced to retire at 65 could affect every employee in the country.
The government has intervened in the case of Leslie Seldon, who claims he was discriminated against on grounds of age when his firm, Clarkson Wright Jakes, asked him to leave at the normal retirement age in line with his partnership agreement.
Dinah Rose QC, acting for the Department for Business, Innovation and Skills, said the case raised "important questions of policy and principle".
The Equality and Human Rights Commission is intervening in a separate legal challenge next Thursday in the High Court over compulsory retirement in a case brought against the government by Age Concern and Help the Aged. It will decide if the UK's default retirement age can be justified under EU law.
Scores of age discrimination claims are waiting in the pipeline for the outcome of these challenges. We will report on the result in due course when the judges reserve their ruling.
Pearson Hinchliffe Commercial Law are able to advise you on employment law matters, especially managing employees' entry into retirement.
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