Scrapping compulsory retirement in UK could have unforeseen results

Regimented retirement appears set
to become a thing of the past in the UK with the launch by the
government of a consultation process looking at scrapping the
default retirement age (DRA), currently 65.

While welcoming the fact that
scrapping the DRA will enable people to work longer, UK insurer
Friends Provident warns there could be some unintended negative
consequences.

For example, with no fixed
retirement date, the insurer believes this could ultimately lead to
an increase in cost for employers which could lead some to consider
removing cover altogether for their employees.

According to a study by

Friends Provident, Visions of Britain 2020, the number
of workers aged 55 and over is expected to grow significantly in
the next 10 years, from 5.14m to 7.16m. The study also found that
48% of workers would like to work either full or part-time beyond
the current statutory retirement age.

A study by Aviva found that a significantly higher 68% of people
over 55 want to work after they turn 65.

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