Sackers responds to consultation on the phasing out of the default retirement age

On 29 July 2010, the Department for Business Innovation and Skills and Department for Work and Pensions produced a joint consultation on the proposed phasing out of the default retirement age (DRA). The consultation closed yesterday.

Faith Dickson, partner at Sacker & Partners LLP, said: “The Government's consultation on removing the default retirement age (DRA) of 65 makes scant reference to the effect on pension schemes.  But we shouldn't ignore the fact that pensions have been designed to provide financial assistance to people later in life, when their earnings potential is significantly reduced, or as a reward for many years of service.

Pensions have profound social importance, enabling people to enjoy later life with dignity but without undue pressure on state benefits, and I hope the Government will not jeopardise the idea of saving for an income in older age in its haste to remove the DRA.  Future generations could end up much poorer as a result."

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