People should be allowed to work beyond the age of 65 and with more flexible hours, the Equality and Human Rights Commission has said.
In the UK a worker can see their employment end at 65, even if they do not want to retire.
The commission wants ministers to scrap the retirement age, saying it is out of date and discriminates against people who want to carry on working.
The government has promised a review of the law.
The commission’s deputy chairman Lady Prosser said it made good business sense in a recession to recruit and retain older talent.
Currently, an employer can legally sack a worker when they reach 65.
But with the state pension age set to rise to 66 in 2024 and 67 a decade later, the commission says retirement law is outdated and employers should extend flexible working.
In a survey by the commission of 1,500 over-50s, 62% of women and 59% of men said they wanted to continue working beyond pension age.
Two-thirds said they were fit for work and cited job satisfaction and financial necessity as reasons to carry on.
Baroness Prosser said: “Radical change is what older Britons are telling us needs to happen for them to stay in the workforce.
“Britain has experienced a skills exodus during the recession and as the economy recovers we face a very real threat of not having enough workers – a problem that is further exacerbated by the skills lost by many older workers being forced to retire at 65.”
‘I want to carry on’
Some companies, including Asda, already encourage people to continue working after 65.
One employee, Kalpene Acharya, 57, said she wanted to keep earning.
“I would like to work in this environment. If I’m, my health supports that, definitely, I would like to work until 70,” she said.
The Department for Work and Pensions said its long-term aim was to “consign fixed retirement ages to the past”.
It said a review of the default retirement age had been brought forward to this year and businesses and individuals were currently providing evidence on the impact of retirement ages. –BBC News
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