LV= welcomes end of default retirement age
The Coalition Government’s move to scrap the default retirement age has met with the approval of LV=.
John Perks, LV= retirement solutions director, has welcomed the implementation of the Coalition’s promise and stated it would come as a relief to those in their 50s concerned about funding their retirement if they were to be forced to retire earlier than they would like to.
According to LV= research, 2.7m over-50s intend to work beyond the previous default retirement age as they could not afford to retire otherwise.
Perks added that the move would help provide those near retirement with greater control and flexibility.
He also praised the Coalition’s decision to remove the need to buy an annuity at age 75, and stated that people entering retirement would now be able to take personal responsibility for their own retirement.
However, law firm DWF warned that employer groups had called on the Coalition to delay scrapping the default retirement age, although employers will still be able to enforce their own compulsory retirement age, provided it can be justified.
Employers fear the change will cut down on flexibility in working, and lead to a rise in unfair dismissal claims.
Category: Insurance News, LV= News
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