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Default retirement age 'harming UK economy'
Thu 29 Apr 2010
A charity group has called for the default retirement age to be scrapped, as the policy is proving to be costly to the UK economy.
According to estimates from Age UK, about 120,000 older people in Britain were forced to retire last year.
This, it said, cost the country approximately £3.5 billion in lost economic output.
The organisation has therefore suggested that the default retirement age be abolished, as this would be a "simple" way of boosting the public finances.
Michelle Mitchell, charity director at Age UK, described the policy as an "unfair" and "outdated" piece of legislation.
She warned that it harms the economy and public finances because it stops experienced and skilled people from joining the labour market and paying taxes.
Ms Mitchell added that 90 per cent of older people in Britain are opposed to forced retirement.
This comes after the Institute of Directors suggested that the default retirement age be raised to 68, to take people's longer life spans into account.