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Most SMEs Oppose Retirement at 65

More than three-quarters of small firms have called for the default retirement age to be scrapped as it puts pressure on mature workers to retire when they are not ready, the Federation of Small Businesses (FSB) has claimed. An FSB survey found that 80% of small businesses do not compel their employees to retire at 65, and 76% believe employees’ retirement should be based on a mutual agreement between them and their staff. “Small firms are known for employing people who are older, and continuing to employ them beyond the default retirement age,” said FSB spokeswoman, Sophie Kummer. “Having a default retirement age can put pressure on an employee who is perfectly capable to consider retiring when there is no need for it. “However, if the retirement age is scrap... »

Retirement at 65 could be scrapped in 2010

Businesses face the prospect of being unable to compel staff to retire at 65, after the Government brought forward plans to review the default retirement age. Under current retirement rules, employers can require staff to retire at 65 – although workers have the right to have requests to continue working considered by their employer. Businesses can also set their employee retirement age above or below 65, if a change can be justified. The Government was due to review the retirement age in 2011, but the economic climate and concern about pensions have prompted the Department for Work and Pensions to bring it forward to 2010. The Minister of State for Pensions and the Ageing Society, Angela Eagle, said: “The Government is responding to the changed economic landscape. The differen... »