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No fixed retirement age from October 2011
29 July 2010
The Government is planning to scrap the default retirement age in the UK from October 2011. Under the proposal, employers would not be allowed to dismiss staff because they had reached the age of 65, the BBC reports. The Government hopes the change will encourage people to work for longer, against a background of an ageing population. That could ease the strain on public finances as more people continue to pay tax, while at the same time claiming the state pension. Activists have argued it could inject billions of pounds extra into the economy. Employment Minister Edward Davey: "This isn't forcing people to retire later, it gives them the choice" Council staff face later retirement to fill £40bn pension fund black hole Council staff face working for longer or paying more towards their pensions to fill a £40bn black hole in retirement funds, according to an official report. The Audit Commission, the spending watchdog for local Government, warns England's biggest public sector pension scheme needs reform after its investments failed to deliver hoped-for returns, the Telegraph reports. It says unlike other schemes for state workers, it does have money stored away to pay for staff in their old age, but its £130bn assets only cover about three-quarters of its liabilities. The Audit Commission says that the gap will widen unless action is taken, and suggests raising employee contributions or the retirement age. Eugene Sullivan, chief executive of the Audit Commission, says: "The scheme can't continue as it is. Unfunded liabilities are being deferred, and this is storing up problems for the future." Published by IFAonline
