Default retirement age of 65 will be abolished
13 January 2011
As anticipated, the Department for Business, Innovation & Skills has today confirmed that the default retirement age of 65 will be abolished from 1st October 2011.
The coalition government's Response to Consultation Paper responds to employers’ concerns expressed during the consultation process, stating that it considers that the dismissal of older workers should be managed by either discussion or formal performance management procedures. There is, however, an exemption which will be introduced for group risk insured benefits such as medical insurance. There was an understandable concern that employers would stop offering such benefits if it became too expensive to pay the premiums due to an ageing workforce. It will therefore not be unlawful to discriminate on grounds of age when providing benefits of this kind. Full details are likely to follow when the draft legislation is published.