Employees Gain Right to Reject Retirement Before Age 66 Under 2025 Act
Updated
Updated · arthurcox.com · Jun 26
Employees Gain Right to Reject Retirement Before Age 66 Under 2025 Act
2 articles · Updated · arthurcox.com · Jun 26
Summary
29 June marks the start of the Employment (Contractual Retirement Ages) Act 2025, letting employees refuse retirement at a contractual age below the state pension age of 66.
Employers will be barred from enforcing those retirement ages unless they can objectively and reasonably justify them by a legitimate aim.
Occupational pension schemes may need to address how later retirements affect benefit accrual, employer and employee contributions, and the timing of benefit entitlements.
Defined benefit schemes also face actuarial, funding and insured-benefit questions, prompting trustees and employers to review scheme rules, documents and member communications before the law takes effect.