Budget 2010: Default retirement age may be scrapped

Alistair Darling has promised to review the default retirement age by either scrapping it or offering greater flexibility to those over 65.

Current rules give employers the right to force a man aged 65 or a woman aged 60 to leave work and the government has already announced it would gradually increase the state pension age from 65 in 2024 to 68 in 2046 - and 65 for women by 2020.

However, many older people need to work beyond 65 due to insufficient pension funds and many want the chancellor to go further.

The government had previously stated that it had no plans to scrap forced retirement but comments from deputy Labour leader Harriet Harman re-ignited the debate and the party pledged a review.

Last month PricewaterhouseCoopers called for a more radical lift to 70 by 2046.

John Hawksworth, head of macro economics at PwC said: ‘We weren’t expecting a change this close to the election but it has announced a review which is what we were calling for, so hopefully they will look at this again soon.’