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The default retirement age should be scrapped, according to the Chartered Institute of Personnel and Development.

Despite the European Court of Justice’s statement on the Heydey case, new research from the CIPD – entitled Future Demand for Working Among Older Workers – highlights the concern that employees who wish to work past the state retirement age are being discouraged to do so.

Statistics found that just under two-fifths of individuals plan to carry on working beyond 65, while a third said they would change their mind if their employer allowed them to work flexibly.

Currently, only 11 per cent of the workforce works beyond the state pension age.

Dianah Worman, diversity adviser for the CIPD said: “The default retirement age should be scrapped. It leads to lazy management, not just of people at the retirement age, but of those approaching it.

“Whether or not today’s statement from the advocate general still stands at the final European Court of Justice ruling, we believe the days of the default retirement age are numbered.

“Employers who continue to engage, develop and motivate their older employees, rather than allowing them to coast towards an inevitable, mandatory retirement age, reap the benefits.

“Our research shows that many older workers want to keep working beyond the mandatory retirement age, for a mixture of financial reasons, and a desire to continue contributing and doing what they have always done.

“People should not be forced to work until they drop. But neither should they be compelled to stop work when they still have a valuable and willing contribution to make.”