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Government moves to scrap forced retirement at 65

The Government has announced that it is going to scrap the Default Retirement Age (DRA).

It means that from October next year, your employer will no longer be able to force you to retire just because you’ve reached the age of 65. You will be able to continue working unless your employer can show that there are valid reasons for obliging you to retire.

These reasons would have to relate to the nature of the work. For example, an employer might be able to show that an older employee could not carry out the tasks required of certain jobs such as police or fire officer.

Ministers are now beginning a consultation process on the issue but have already outlined the timetable for phasing out the DRA.

It means that from 6th April 2011, employers will no longer be able to issue any notifications for compulsory retirement using the DRA procedure.

For the period between 6th April and 1st October 2011, only people who were notified before 6th April 2011 and whose retirement date is before 1st October 2011 can be retired compulsorily using the DRA.

After 1st October next year, the DRA can no longer be used to oblige employees to retire. If employers wish to retire an employee after that date they will have to show that their reasons are objectively justified.

Pensions Minister Steve Webb said: "Many older people want to work after age 65 and have a wealth of skills and experience that are not being used. We want to get rid of the Default Retirement Age so that if they want to work they can do so. By spending longer in the workforce they can also have a better pension in retirement."

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