Reaction to retirement age scrap plans

Government plans to scrap the default retirement age next October have been criticised by the North West business community.

Under the plans employers would not be allowed to dismiss staff because they had reached the age of 65. Currently an employer can force an employee to retire at the age of 65 without paying any financial compensation

Commenting on plans to scrap the retirement age, Dr Brian Sloan, Head of Business and Economic Policy at Greater Manchester Chamber of Commerce, said: "We believe that the default retirement age should remain 65. While Chamber members recognise the benefits of allowing employees to work beyond this age, they want the flexibility to decide whether or not this is appropriate.

"Many employers already have processes in place that allow staff to work beyond 65, but the default retirement age provides a fail-safe. Scrapping the retirement age at a time of high youth unemployment and slow economic growth is not helpful to business."