Retirement age scrapped: What does it mean for you?

The default retirement age of 65 will be scrapped from October this year, the government has announced.

It means employees will no longer be able to be dismissed just because they have reached the age of 65. 

The Department of Business says from April 6 2011, employers will not be able to issue any notifications for compulsory retirement using the default retirement age procedure.

Between 6 April and 1 October, only people who were notified before 6 April, and whose retirement date is before 1 October can be forced to retire using the default retirement age.

After 1 October, employers will not be able to use the default retirement age to compulsorily retire employees.

What the changes mean for you:

Q. Am I no longer allowed to retire at 65?

You are still able to retire at 65 if you choose to do so. The rules simply mean your employer cannot force you to leave just because you have reached 65.

Q. Can I still draw a pension at 65?

Yes, for now. The age at which you can draw a pension has not been changed. You can still draw your pension at 65 if you choose to retire then. However, the coalition has claimed the age at which you can draw a pension will rise to 66 by 2020.

Q. Do the new rules apply to all jobs?

There will be some jobs where it is unfeasible for an employee to stay on after 65, including many manual jobs. The government says the employer must "objectively justify" their decision to keep a retirement age.

Q. I am an employer, do I have to keep on workers over the age of 65 rather than hiring youngsters and giving them a chance?

The argument that older people will block jobs for youngsters is ongoing. However, this would not be a valid reason to dismiss someone from a post. Only if you feel the person's performance is becoming poor or unsatisfactory could you issue a "fair dismissal".

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please warn all persons over65 that they need to be self employed to gain any real benefit if they earn over £25000 (total income including pensions) as the Tax Man kicks you in the teeth by reducing your tax allowance by £1 for every £2 you earn over that limit

Great news! Pensions are not enough to live on - so we need all the extra we can get

Too late for the staff at Longleat - all over 65's kicked out before the new law comes in by Lord Bath's son who has taken over (avoiding death duties perhaps?)

Very unfair, I am 66 yars old but fitter than most persons who are 20 or more years younger. I work hard, have a good high standard turnover at work, no sickleave (unlike the rest). I have just received a letter, so I will be one of the few people who enjoys work being given the push . At lest with the new law people who enjoy work and can fulfil their role may benefit the community.

is the scrapping of compulsory retirement ages going to be reflected in the police service as well where it is currently 55yrs?

Does anyone know what happens to people who have a work contract that is worded to cease upon the 65th birthday of the employee (this event is not occurring for a good few years yet)? It is a "permanent" employment contract but the company has always had a clear policy that normal employment stops at 65 so they put end dates in when they were written. I wonder if this is legally binding or not?

This should have happened 5 years ago when the EEU banned age discrimination,ageism is a farce in this country,if some have to retire at65 it should apply to all including MP's and members of the House of Lords