Frank O'Donnell

The latest suggestion from the Equality and Human Rights Commission has suggested that the default retirement age should be abolished to prevent a shortage of skills needed to steer Britain through an economic recovery. Financial necessity is among the most important reason for older workers to continue working.

Cited research from the National Institute of Economic and Social, illustrates that extending working lives by 18 months would inject £15 billion into the British economy.

By abolishing the retirement at age 65, this means skills will remain in the economy, welfare costs will see a decrease and an increase the spending power of older Britons, the equality watchdog also concludes.

 A total of 24% of men and 64% of women say they plan to keep working beyond the state pension age.

The research shows that in providing real opportunity to older workers and abolishing the default retirement age this needs to be accompanied by an effort by the government, employers and agencies to meet the health, caring and work needs of the over-50s to enable them to remain in the workplace.

The government recently stated that it had no plans to scrap forced retirement at age 65 and an official review on retirement ages is due this year.

The Equality and Human Rights Commission said the Lords have the opportunity to remove the default retirement age through the Equality Bill.