Q&A: How the new law will affect you and your future

Q When does the new legislation come into effect?

A From 6 April employers will not be able to issue any notifications for compulsory retirement using the default retirement age (DRA) procedure.

Q Does this mean that everyone can stay on after the age of 65?

A No. Between 6 April and 1 October, those people who were told before 6 April, and who are due to retire before 1 October, can be compulsorily retired using DRA. After 1 October, employers will not be able to use DRA to force staff to retire.

Q Could everyone continue working until they are 80, 90, or 100?

A No. The government says there are certain jobs where working beyond 65 would be difficult. Some examples they are considering are police and air traffic controllers. Various manual jobs may also fall into this category.

Q Can people still retire at 65 if they want to?

A Yes, or they could retire earlier if they have enough savings or a private pension.

Q What can an employer do to get rid of an employee who they say is not effective?

A Employees could still face "fair dismissal" if their work performance is poor or they can no longer do the job as stated in their contract.

Q How will this affect the state pension?

A The age at which people can draw a state pension will rise to 66 by 2020.

People who keep working after 65 can either take their pension while they work, or put off taking it and draw a slightly larger state pension or a lump sum.

Q Will this new legislation prevent younger people getting jobs?

A Campaigners and the government argue that if older people work for longer they will have more spending power and so create more jobs for all age groups, including younger people.

Q How many people are likely to keep working after 65?

A Under the plans, at least 6,000 people each year are expected to take up the opportunity to keep working.

Q Do some companies already allow their staff to stay on after 65?

A Companies such as Marks & Spencer, JD Wetherspoon and the Co-op have already scrapped a default retirement age and say older workers are highly effective.

Q What about employers running small businesses?

A Small businesses will be able to use the conciliation service Acas to help resolve disputes arising between employers who want older staff to retire and employees wanting to remain.