July 27, 2009

Review of the Default Retirement Age will be Brought Forward to 2010

The UK Government has announced in its strategy document, ‘Building a society for ages' that it will bring forward its review of the default retirement age to 2010. The review has been brought forward from 2011, when it was originally scheduled, to reflect the ‘change in economic circumstances' since the default retirement age of 65 was introduced.

The Employment Equality (Age) Regulations 2006 provide that an employer may fairly dismiss employees for retirement who are over the age of 65. The Government announced that it would review the default retirement age in 2011 and this was widely expected to lead to its abolition. However, this review will now be brought forward.

The Government has begun engaging with stakeholders to design, develop, implement and review the strategy. If the default retirement age is found to be no longer necessary then any changes would be implemented in 2011.