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29 Jul, 2010 - UK fixed retirement age to
be axed
The UK
government has announced that it is planning to scrap the fixed
retirement age from October 2011 in order to help pensioners work
longer if they wish to do so.
Under the new proposal employers would not be able to sack staff or
force them to retire once they reach the age of 65. Activists have
said that this proposal goes some way in reducing ageism within the
workplace.
The only obligation on an employer is to hold a meeting with the
member of staff to discuss plans at least six months before their
65th birthday. Currently, it is entirely at the discretion of the
employer whether or not to terminate employment.
The coalition government hopes the change in fixing the retirement
age at 65 will encourage people to work for longer, against a
background of an ageing population. This proposal could ease the
strain on public finances as more people continue to pay tax, while
at the same time claiming the state pension.
If you would like more information on pensions and retirement
planning, please click
here.
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