Budget 2010: Default retirement age to be scrapped and state pension age increased to 66

The coalition government will accelerate the increase in state pension age to 66 years.

It will also begin phasing out the default retirement age from April next year.

Charles Cotton, reward adviser at the Chartered Institute of Personnel and Development, said: “It is no great surprise that the government is planning to accelerate the rise in the state retirement age.

“However, it is a shame that they have swerved a clear decision on the default retirement age, and have chosen instead to hold yet another consultation on its abolition. They should make their consultation swift, and move quickly to bring to an end the absurdity of enforced retirement.

“In tough times like these, it is all the more crazy to force people out of the labour market and into the pension claimant ranks. People who want and are able to keep working can do more to reduce the deficit than people forced out of work and into unwilling retirement.”

http://www.employeebenefits.co.uk/benefits/occupational-pensions.html