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Retirement Planning

RETIREMENT

With the removal of the default retirement age in October 2011 it is still possible for employers to define a set age for retirement provided that the retirement age can be "objectively justified".

In these terms this means that the set age is a "proportionate response to a legitimate aim". Workforce planning and health and safety spring to mind as possible legitimate aims.

Only time will tell (and case law established) as to what Tribunals will agree as being proportionate responses to legitimate aims in cases of "unfair" retirement where employers have set a retirement age that is below the State Pension Age.  

Merely believing that you have a legitimate aim will not be good enough and any such policies will need to be supported by real evidence. 

Any retirement needs to follow a fair procedure and employers need to be consistent in their approach.

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