Default retirement age

The government has announced plans to abolish the default retirement age (DRA) by next year.

Currently, employers are allowed to retire people from the age of 65 with no obligation to them except a notification meeting six months before their birthday.

Under the new rules, an employer will not be able to enforce a particular age of retirement unless it can be fully justified because of the demands of the job.

The chancellor wants changes to the current retirement system to be introduced from April 2011, with the aim of completely abolishing the DRA by the following October.

A consultation process about abolishing the DRA has begun with the aim of allowing employers to prepare for the changes.

The reforms have been announced against the background of anxiety about pension funds and an increasingly ageing population.