The government has announced it will remove the default retirement age (DRA).
Currently the DRA (the age at which employers can make employee retire) is 65.
Secretary of state for work and pensions Ian Duncan Smith and pensions minister Steve Webb announced the removal of the DRA as part of the steps they plan to take to fundamentally reform Britain’s pension system.
Duncan Smith said: “People are living longer and healthier lives than ever, and the last thing we want is to lose their talent and enthusiasm from the workplace due to an arbitrary age limit.
Marc Hommel, pensions partner at PricewaterhouseCoopers LLP, commented: “Employers recognise that today’s employees will have insufficient retirement savings and that employers have a role to play in helping them to save for retirement. At the same time, there is greater diversity in career paths, family circumstances and desired retirement patterns. Employers increasingly recognise the value experienced people can bring to a business.
“Consequently, irrespective of the removal of the default retirement age, we are seeing employers offering increasingly flexible retirement practices, including flexible retirement ages; allowing staff to work part time or for more than one organisation; and the ability to draw a pension while still working,”
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