The default age at which people used to retire was 65 years. However, there is no such thing as a ‘compulsory retirement age’ anymore.

Theoretically, you can carry on working for as long as you want. However, there are some exceptions.

Exceptional reasons for compulsory retirement

There are some circumstances under which you can still be forced to retire. However, before your employer can do so, they must give you a good reason.

The employer must justify:

• the need for compulsory retirement, and
• the age at which you must retire.

They should be able to demonstrate that there are no other reasons for forcing you to retire.

The most common reasons for compulsory retirement are that:

• the job requires certain physical abilities
• the job has an age limit set by law (e.g. in the fire service you must retire at age 55.)

If you are forced to retire for a legitimate reason, your employer should still give you appropriate notice.

Do you still have employment rights?

Even though you may have passed retirement age, you are still protected from unfair dismissal. Your employer should not assume you cannot perform certain tasks because of your age.

In the event of dismissal or redundancy, your employer’s decision should be based on objective criteria.

Protection from age discrimination

The Equality Act 2010 protects employees from discrimination or unfair treatment based on a protected characteristic. Age is a protected characteristic.

Employees are protected from direct discrimination (when treated less favourably because of age), indirect discrimination (where a working practice indirectly puts an employee at a disadvantage due to their age), age-related harassment or victimisation.

What does age discrimination in the workplace look like?

A common example is a situation in which an employer only selects part-time workers for redundancy, but most of the part-time workers are older.

Another common scenario involves an employer imposing an unjustified fitness requirement, which someone older may not be able to meet.

Reducing working hours instead of choosing to retire

You may not wish to completely retire. At the same time, you may find your current working hours a little too demanding. If that’s the case, you can ask your employer about changing to a part-time or flexible working schedule.

What about the state pension age?

The ‘state pension age’ is the earliest age at which you can claim the state pension. It is not the same as retirement age.

Currently, the state pension age is 66 for men and women, although this age is scheduled to rise to 67 between 2026 and 2028.

You do not have to take your pension at the state pension age, but it is the earliest date from which you can do so.

It is possible to claim state pension even if you’re still working. However, there may be financial and tax implications, so taking professional advice before doing so is recommended.

Bear in mind that any private or workplace pension scheme may have different rules. It’s possible they may specify an earlier age at which you can claim your pension.

It’s important to check each pension scheme to understand what will happen if you continue working, or if you decide to defer payment.

The good news is that once you reach state pension age, you no longer have to pay National Insurance. Depending on your total income (including that from any pension) you may still have to pay tax.

Discussing your plans to retire

Your employer may ask you about your plans to retire. This in itself is not unreasonable. If you are planning on retiring soon, your employer needs to make plans to replace you.

However, you don’t have to discuss your plans. You should never feel pressured into agreeing to retire when you don’t wish to.

What should you do next?

Making the decision to retire should not be taken lightly. There are several factors that need to be considered, including:

• your financial situation
• your health
• any work benefits (e.g. health insurance)
• your lifestyle and future plans
• your partner or family.

You may need to take financial advice before you decide.

Seeking help when you are forced to retire

If you feel you are being, or have been, forced to retire, or that you are the victim of age-based discrimination, harassment or victimisation at work, we can offer professional advice.

As employment law solicitors, we are experienced in helping employees to understand their rights – both during employment, and when employment ends.

For an initial consultation, get in touch today.