Forced retirement costs UK £3.5bn a year, says Age UK

Forcing older workers to retire cost the UK last year an estimated £3.5 billion in lost economic output, new figures by Age UK reveal ahead of tomorrow night's TV showdown among party leaders on the economy.

With an estimated 120,000 older workers forced to retire in 2009, new research by the leading older people's charity now shows the policy is draining billions of pounds from the economy every year. Forcing over a hundred thousand employees out of the job market has opened up an estimated £3.5 billion gap in lost economic output, says the Charity. This includes £2 billion in lost earnings for the workers themselves.

The three main political parties have all committed to change the Default Retirement Age in their manifestos, but neither the Conservatives nor Labour have guaranteed a complete end to forced retirement. Age UK is now calling on all parties to pledge to scrap the law outright.

Michelle Mitchell, Age UK Charity Director, said: "While party leaders are gearing up to lock horns over the state of the economy, they should remember that scrapping the Default Retirement Age is a simple step to boost public finances.

"The Default Retirement is not only an unfair, outdated piece of legislation, it also causes real harm to our economy and public finances by depriving the labour market of experienced, skilled workers who would otherwise be paying taxes.

"Nine in ten older workers oppose forced retirement. It's now time for the parties to go beyond warm words and give mature workers a simple, radical pledge to scrap forced retirement."