A weak economy and even weaker retirement assets make working past 65 an attractive option – something that has been recently realized in Britain.
Britain used set the default retirement age (DRA) to 65, but aging populations and pension shortfalls have compelled it to scrap the DRA.
The DRA in Britain has now been removed; effectively preventing employers from sacking their older employees because of old age. These same workers can also negotiate with their employers to work part time or be given more flexible hours, although the employer is not compelled to take the initiative with these offers.
There is, however, a snag. The DRA still applies to workers who have received notifications of their retirement age on or before April 5, 2011.
Employees can also be dismissed “if the employees are no longer capable of performing their role due to age.” This is especially applicable to individuals in positions that deal in safety, like police officers and air traffic controllers, although it is not clear if this will prove to be an exploitable loophole for employers seeking to rid themselves of their older employees.
The United States generally outlaws mandatory retirement, although age discrimination in more subtle forms continues to be a widespread problem for our more senior citizens.