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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Born in 1955 I have already been forced to work untill Im 65 because of government increases to retirement age. Some of us actually do want to retire, are we getting a choice? I am looking forward to some leisure time before I pop my clogs at this rate i will be working till I drop. That would suit the government I suppose.
Why is it needed. I think it’s not been worked out properly or there is some underhand reason why the government are doing this. I worked in the public sector and the wage was historically low but I had to pay into a pension system at 6% of my total earnings. This while trying to live and bring up a family on lesss money than my neighbour who had the same wage but did not pay into a scheme. I took early retirement at 50 because I paid my dues not like the private sector or the self employed who only pay a basic stamp.Now I am told I will have to wait until I am 66 to get my state pension.I had a pension forecast and was told I had paid up dues to allow me not to pay the state pension from 60, I wonder now if I am still in benifit.The goverment have put their hand into my pot, robbed me and now have the gall to ask me to wait longer for what I have already paid. Does anyone reading this know If I have any rights to say I have paid, it’s not my fault the government have stolen my money and could I take them to a court of human rights? The government talk about transparency, well I think we are seeing less openness from this lot than the last load of theives. They said if they are not honest they deserve to be kicked out of office, I say lets all get together and start kicking. Oliver Cromwell will be turning in his grave looking at the miss management in the house of commons has been and is being handled.