The Government has confirmed the phasing out of the default retirement age of 65.  The phasing out will start on the 6th April 2011.

Compulsory retirement after October 2011, regardless of age, will be unlawful and potentially resulting in an unfair dismissal claim unless an employer can justify their reasons as a “proportionate means of achieving a legitimate aim”.

Retirement links in with pension sharing and makes it perhaps even more difficult now to determine the correct approach to pension sharing and the percentage share that should be applied in the light of uncertainty as to when retirement will take effect.

For more information please contact the Partners.