From Branston Adams Chartered & Certified Accountants’ July newsletter
http://www.branstonadams.co.uk
While most people in the UK retire by the age of 65, 1.3 million continue working beyond that point. The Government has announced that it has brought forward its review of the default retirement age from 2011 to 2010, as a result of changing demographic and economic circumstances.
Many see the announcement as an indication that the default retirement age of 65 will be scrapped.
The Confederation of British Industry (CBI) has described the decision as ‘disappointing’, arguing that 81% of employers already accept employee requests to continue working
beyond the age of 65, and that having a default allows both staff and businesses to plan ahead.
Katja Hall, Director of HR Policy at the CBI, said, ‘Some people can happily work in their existing job beyond the age of 65, but this is not possible for all occupations, and companies with smaller numbers of staff have particular problems adapting jobs to the needs of older workers’.
However, the Trades Union Congress (TUC) has welcomed the news. TUC General Secretary Brendan Barber commented, ‘It cannot be right that an employer can sack someone simply for being too old. A key challenge as we live and stay active longer is developing the right kind of jobs, support and training for older workers’.