Ian Naismith of Scottish Widows comments on the government plan to scrap the default retirement age: “This is a positive step towards both employers and employees acknowledging that many of us will need to work past 65. We live in an increasingly ageing society and coupled with the economic environment of recent years it is not realistic to force people to retire at a certain age, many of us will have to work longer to ensure we have a comfortable retirement. By scrapping the default retirement age, it gives employees the flexibility to retire when they want to rather than being forced to end work prematurely.”
Companies will no longer be able to force people to retire at 65. Insurers should amend their insurances so that those over 65 are not denied cover. Individuals should ensure that existing and new insurances do not suddenly cease cover at 65 or even earlier, and are flexible to give you the choice of when to retire.
Life insurance: News update: 6 August 2010