The default retirement age (DRA) should be retained, according to the Forum of Private Business (FPB).

The FPB has responded to the official consultation on DRA, which closed yesterday.

The FPB’s response says: “Removal of the default retirement age will limit some small businesses by removing the tools that help them to plan for the future.

“Most employees are certainly competent enough to work beyond the age of 65 without a significant deterioration in their abilities. However, for those employees not willing to leave voluntarily, there will eventually come a time when the needs of the business will have to be considered.

“In the absence of a default retirement age, the only viable option available to an employer is a capability dismissal based on the declining competence of the worker. We believe this would be an undignified and humiliating end to a career for most staff.”

FPB chief executive Phil Orford says: “I don’t think anyone would dispute the valuable contribution older workers make to the economy. With people living longer and healthier lives, the skills and experience older people can bring to the workplace are widely recognised.

“However, at the moment, there is nothing to stop anyone from working beyond 65, providing it suits both parties. The current law works perfectly well, so why tamper with it?

“By scrapping the default retirement age, all the government will do is take yet more control away from business owners, add even more complexity to workplace law, and open to door to costly and painful employment tribunal cases.”