Government promises swift end to age 65 default retirement age

The default retirement age for pension schemes will be repealed much sooner than initially suggested by the coalition government, pensions minister Steve Webb has revealed.

Speaking to an audience of pensions professionals at the International Longevity Centre (ILC), Webb (pictured) said the coalition government’s plans to phase out the default retirement age (DRA), would be pursued ‘vigorously’.

‘The first thing we want to get rid of is the DRA, which, it seems to me, is an anomaly. The coalition document said it would be phased out, but you should understand that as a vigorous burn,’ said Webb.

DRA rules allow employers to retire employees, both male and female, at 65 regardless of their ability to work longer. The previous government had promised to review the rules but had made no firm committment to abolish them.

‘It will be vigorously phased out and while that also depends on my colleagues at the business department they have been very keen to get on the job.’

Webb repeated his claim that he would try to avoid ‘the curse of instrumentalism’ and bring in sweeping reforms to UK pensions.

‘What I hope to do, while fire-fighting, is look at the bigger picture. There is a disjunction of responsibility between the Treasury team members and we will need to work together.’

‘At the top of the pile is the state pension. When answering questions at conferences I only need one answer and that is reform of means testing and the state pension. It must be made simple and a strong foundation on which people can build pension savings.’

Webb repeated his support for early access to pension funds, arguing that many home repossesions could have been avoided by not locking away assets, and promises a 'speedy and thorough review' of the National Employment Savings Trust (Nest).