U.K. Considers Abolishing Mandatory Retirement Age of 65
July 13 (Bloomberg) — The U.K. government, aiming to help the country cope with an aging population, said it was considering whether to abolish rules allowing employers to force staff to retire when they reach age 65.
Pensions minister Angela Eagle said in an e-mailed statement that a review of the default retirement age, originally planned for 2011, will now take place next year. While the majority of Britons retire before they reach 65, about 1.3 million choose to work past that age. According to the government, more people would do so if their employers let them.
“It is time to look again at this,” Eagle said. “We want to give older people flexible retirement options. The government is responding to the changed economic landscape.”
In 2005, Adair Turner produced a report for the government on pensions arguing that Britons would have to work longer and save more to enjoy the same standard of living in retirement as their parents. The following year, the government said it favored raising the age at which state pension was paid from 65 to 68 by 2046.