WORKERS WILL no longer be forced to retire at 65 from next year under plans unveiled by the Government today.

It means people would be able to stay in their jobs into their 70s and 80s. Ministers want to end the discrimination of the retirement age, which allows firms to force staff out at 65.

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Edward Davey, the employment relations minister, said the aim was to give people the “choice” to carry on working for longer if they wanted and felt able to.

The move is also expected to boost the public purse. The longer people work the more taxes they will pay and the less benefits they will claim.

Mr Davey said: “With more and more people wanting to extend their working lives we should not stop them just because they have reached a particular age.

“We want to give individuals greater choice and are moving swiftly to end discrimination of this kind.

“Older workers bring with them a wealth of talent and experience as employees and entrepreneurs. They have a vital contribution to make to our economic recovery and prosperity.

“We are committed to ensuring employers are given help and support in adapting to the change in regulations and this consultation asks what kinds of support’s required.”

At present workers can be forced to retire on their 65th birthday on six months’ notice. A consultation process will now begin, with forced retirement due to be phased out from April before becoming illegal from October 11, 2011.

Campaigners hailed it as a victory against ageism. Rachel Krys, campaign director for the Employers Forum on Age, said: “This is an incredible leap forward on employment practices and great news for individuals.”

But business leaders warned it would complicate the job of managing a workforce and add to costs.

John Cridland, CBI deputy director-general, said: “In certain jobs, especially physically demanding ones, working beyond 65 is not going to be possible for everyone.”

But Mr Davey dismissed this, saying: “People can performance manage their employees and talk to them sensibly. If they are not capable of doing the work they can be asked to leave.”

By London Reporter Sunita Patel