Default retirement age could be scrapped

Employees should be given the right to continue working beyond the default retirement age, equality minister Harriet Harman has said.

Speaking at an Age Concern conference, Harman called for a ‘massive public policy change’ that would enable staff to work into their late 60s, 70s and 80s.

Under the suggested reforms, workers would also be granted the legal right to ask to work part-time or from home, or to request flexible working hours.

‘We still have more to do to tackle the attitude that once you reach 60 you are just treading water until you become frail and dependent,’ Harman commented.

‘This is important not just for those individuals concerned but for the economy as a whole. We have to banish the ageism in the workplace that costs an estimated up to £31bn per year due to lost GDP.’

The default retirement age is currently 65, meaning that employers cannot force workers to retire earlier unless a lower retirement age can be justified. Although staff can request to stay on beyond the default age, companies can refuse to let them.

Meanwhile, business leaders have welcomed the Government’s decision to fast-track the review of the default retirement age planned for 2010.

National Chairman at the Federation of Small Businesses (FSB), John Wright, said: ‘Many small business owners have no intention of putting in place a blanket policy to retire their staff at 65 – they understand the valuable contribution and skills that older workers bring to the business.’

In a recent poll carried out by the organisation, 80% of respondents said they do not use the default retirement age, while 90% of small firms would consider an employee going into part time or flexible working, rather than retiring.