"We have removed the contractual retirement age altogether. It simply doesn t make sense to retire an employee
because of their age. All that should matter is competency to do the job. Employees can continue in our pension scheme
past 65, and draw on their pensionwhile they work for the Group."
Amanda Jones,
Head of Diversity,
Co-operative Group.
The resource centre has information about age legislation, publications and external contacts.
There is no official retirement age in the UK.
Age regulations introduced a default retirement age of 65 but this is not mandatory.
Employers do not need to set a retirement age at all. Your company has a choice - either to set its own retirement age, or to do away with one altogether.
Many businesses are adopting flexible approaches to work and retirement and are finding it successful - they can work out an adaptable retirement plan that is beneficial to both the employee and the company. Some of the main benefits reported by employers are:
If there is no set retirement age, it is assumed that an employee will continue working and it is up to the employee to notify the employer of their wish to retire.
The law includes a default retirement age of 65 for employers who still believe they need to set a compulsory retirement age. It means those employers can set a compulsory retirement age at 65 or above.
Compulsory retirement below 65 is unlawful, except where an employer can objectively justify the earlier retirement age. The test of objective justification is not an easy one and it would be necessary for the employer to provide evidence. This means that the employer would have to show that the reason is necessary and is the right way to meet a genuine aim of the business.
Procedures apply if an employer decides to use a compulsory retirement age.When an employer uses a compulsory retirement age (whether 65 or higher) they must write to employees not less than six months before the intended retirement date telling them of their right to request to work longer.
All employees have the right to request to work beyond a compulsory set retirement ageand employers must consider all requests to work longer.
Employers may still refuse an employee to work past the compulsory retirement age (whether 65 or higher) as long as they have followed the correct procedures.