Work till you drop?

Default retirement age will be dropped from October 2011
Default retirement age will be dropped from October 2011

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Thursday, 29, Jul 2010 09:29

By politics.co.uk staff

Employers will not be able to force 65-year-olds to retire from October 2011, the government has announced, giving older people the opportunity to continue working as long as they like.

A consultation launched by the government today proposes phasing in the demise of the default retirement age (DRA) by October next year. Chancellor George Osborne had announced in the Budget the move would be introduced from April 2011.

The announcement has met with mixed responses. Charities like Age UK have welcomed the move, saying it will free up older people's skills and experience.

Businesses have reacted more cautiously, however, arguing that the existing framework had worked effectively. Today's consultation will assess whether the scrapping of the DRA will have adverse effects on insured benefits or employee share plans.

"The decision to abandon the DRA leaves business with many unresolved problems, and the government's timetable to scrap it will give companies little time to prepare," the CBI's deputy director-general John Cridland said.

"Scrapping the DRA will leave a vacuum, and raise a large number of complex legal and employment questions, which the government has not yet addressed."

Ministers insisted the ending of the DRA would help older people make a "vital contribution" to society, however.

"With more and more people wanting to extend their working lives we should not stop them just because they have reached a particular age," employment relations minister Ed Davey said.

"We want to give individuals greater choice and are moving swiftly to end discrimination of this kind."

Pensions minister Steve Webb pointed out: "By spending longer in the workforce they can also have a better pension in retirement."

Not all job sectors will be affected by the move. The government is prepared to consider allowing individual employees to continue to force employees to retire at a certain age, but must justify doing so.

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  • "As work for me was a detestable experience for many years, the thought of expecting anyone working beyond the age of 60 in order to earn a pension horrifies me. There is much more to life than "work" and we should be able to retire earlier so that we can enjoy life while we are still reasonably active without being restricted by the rules and regulations of employment."

    Audrey Moore (Wallasey, Merseyside) Posted: 29/07/2010 16:07:35

  • "Oh how glad I am that I am aged 73Oh how glad I am that I am aged 73 and am too infirm to be sent down the mines. Apparently everyone is going to live longer and so our new benevolent government had decided that voters will be privileged to work longer before qualifying for State pension. We can only wait with bated breath and a definite absence of hope for the world of medical research to devise the means by which 60 to 70 year olds might retain the vigour and energy they enjoyed in their prime, and to nullify the inevitable deteriorating effects of ageing. This might enable them in their dotage to be fit enough to be employed, or to remain in employment. That is assuming any employer wants to employ cynical old farts, and by then nation-wide cynicism should be at record levels, and that is also assuming that employers haven't shunted most of the jobs abroad for cheaper pay roles. Shabby is the word that springs to mind. So folks are to work longer and receive less for their efforts. Massive staff cuts and pay freezes are to be the new way of life meaning that employees that are kept on will be expected to also share the workload of their now unemployed colleagues. All of these 'we're all in this together' sacrifices with no end in sight nor, I suspect, ever will be in sight, and deepening ongoing suspicion that we are being conned by the banks and financial experts that got us into this mess, and also the government that has let the banks off so lightly. Meanwhile the nauseating bonus culture continues to grow and thrive. Surely these are echoes of the grim Thatcher years? What is the current governmental buzz-word? Back then it was Rationalisation. This week on TV we were treated to a patronising lecture given by a no doubt well-heeled Lord somebody or other. The theme was that if because you qualify for council housing that probably will never be built you have been forced to rent from the private sector in a high rent area where you are employed, in future due to the crippling effect of housing benefit capping you should seek to rent in a low rent area (assuming any exist any more?). Am I mistaken but don't folks and their families flock to work in towns because that's where the jobs are, and so rents in towns are always higher? So you move to a low rent area where there are few available jobs but will lose your benefits unless you accept offered employment no matter whether it is suitable for you or not. Thank God we live in a free country where every case is judged upon its merit and its outcome is then always decided by inflexible blanket rules which when we appeal we are told, cannot be changed. Never mind, I gather that the UK is to create a new space programme and so maybe all of we 'oldies' could be shunted to some other planet where there's no toxic black holes nor ongoing war on terror! Meanwhile I think I'll have a lie down.Keep smiling cos we're British!David Brittain "

    d (Walton on the Naze, Essex) Posted: 30/07/2010 13:17:42

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