Default retirement age
Background to the consultation on phasing out the default retirement age, launched on 29 July 2010
On 29 July, the government published the Phasing out the Default Retirement Age consultation seeking views on its proposals to phase out the default retirement age, fulfilling a commitment in the Coalition's Programme for Government and the Budget. The Phasing out the Default Retirement Age consultation proposes a six month transitional period ending with full abolition of the default retirement age in October 2011. Views are invited by 21 October 2010.
The consultation builds on the joint review by BIS and the Department for Work and Pensions (DWP) considering whether the default retirement age of 65 remains appropriate and necessary. This review was announced by the previous government in its Building a Society for all Ages strategy. In conducting the review, many issues including the needs of business and individuals in the prevailing economic climate were looked at.
The Survey of Employers’ Policies, Practices and Preferences relating to age (SEPPP) provided an insight into employers’ age based practices, in particular the use of the default retirement age, and took into account the broadest possible range of evidence to inform the review.
Stakeholders and interested individuals were called to submit their evidence to the review. A summary of submissions from stakeholders and interested parties (PDF, 49 Kb) has now been published.
Background to the Default Retirement Age
The Employment Equality (Age) Regulations, which came into force on 1 October 2006, provide for a default retirement age of 65 that employers can rely on if they wish. The regulations make earlier retirement ages unlawful unless employers can objectively justify them. The regulations also introduced a new statutory right for individuals to request postponement of retirement beyond the age of 65 - requests which the employer must consider.
Research
Several research documents have been released by BIS and DWP to support the Default Retirement Age review and consultation.
