Removing the default retirement age would be 'very concerning' as it would lead to fewer roles for young people, David Frost, director general of the British Chamber of Commerce told the National Association of Pension Funds conference.
Frost said removing a default retirement age would cause 'bed blocking' by older people. 'At a time where the government is relying on the private sector to absorb public sector redundancies, this policy is very concerning,' he said.
'I do not think it is right that a 65-year-old should just be allowed to carry on working when we have over one million unemployed..
Frost said the current right-to-request system worked well and that the only change to the default retirement age should be to raise it in line with state pension age.
He said he thought removing the default retirement age would result in more employment tribunals as employers try and dismiss over 65s for poor performance.
Frost voiced his support for automatic enrolment and Nest. However, he said he had concerns over the application of new legislation to smaller businesses.
'We would be very concerned about the heavy-handedness of the government towards small businesses that failed to enrol on time or keep records...we think this could be a very expensive burden,' he said.