Pension Age Set to Rise

The new coalition government are set to raise the state pension age for men to 66, possibly as soon as 2016 and are also planning to look at raising it even further, possibly as high as 70.

If that wasn’t enough the Government are also targeting the national default retirement age – the age at which employees can be legally sacked by employers – and look set to scrap it completely.

Age discrimination legislation is already proving to be a challenge for many employers,  just look at the Leeds Teaching Hospital NHS Trust and the £147,00 employment tribunal award made against them earlier this year.

Do you currently seek employment law advice before taking formal action with employees?

Predictably, the Government announcement on plans to raise the pension age have been met with criticism by unions, including the GMB whose General Secretary Paul Kenny said “To force someone who has done a lifetime of toil on building sites, farms or in factories to work until they are 66 is completely unacceptable.”

But it seems most of the comments / criticisms have focused on the planned rise to the pension age for men and little has been said about the Government’s plans to scrap the national default retirement age.

Are the government right to look at scrapping the default retirement age?

What would the scrapping the national default retirement age mean for UK Employers?

What changes would your business need to make to better accommodate and support workers over age 65 in order to avoid facing claims of age discrimination if the Government goes ahead with its plans?