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UK – Thousands more working following abolishment of default retirement age

02 October 2014

In honour of International Older People’s Day (1 October), the Department for Work and Pensions (DWP) revealed that, since the abolishment of the default retirement age on 1 October 2011, there are now 1.1 million workers aged 65 or above, compared with 874,000 three years ago.

Since the end of the final form of legal workplace discrimination, the employment rate for those aged 65 or older has risen from 8.6% in Q4 2011 to 10.1% in Q2 2014.

Pensions Minister Steve Webb said: “In years to come, we’ll look back at the kind of age discrimination that the default retirement age represented and wonder how it was ever allowed. Forcing people to retire at 65 might have made sense in 1925 but, in the 21st century it was nothing short of an outrage.”

“We have to wake up to the needs and expectations of today’s workforce – 30% of whom are now aged over 50 and one million over 65. These people have a massive role to play in our economy and society and many quite rightly want to carry on using the skills and knowledge they have honed over decades and also pass them on to younger colleagues.”

“We are now supporting older workers further by extending the right to request flexible working and providing new pension freedoms so they can combine pension income with earnings, and therefore plan a gradual retirement,” Mr Webb added.

Ros Altmann, the Government Business Champion for Older Workers, said: “Older people are a huge resource for society and the whole economy. Indeed they have the potential to revitalise growth as more of them are working longer and staying active than ever before. There are currently well over one million people working beyond age 65.”

“It is also important to destroy the myth that older workers somehow take the place of younger ones. The evidence is clear that helping older workers stay in the workplace is not only good for their own finances but also helps create more jobs for younger people too. As older generations have extra income and spending power for the short and longer term, this can boost the outlook for the whole economy and workers of all ages,” Ms Altman concluded.