Age discrimination law now makes it unlawful to treat people differently on grounds of age, unless such treatment can be justified or falls within one of the exemptions or exceptions to the law (see question 27, below).
This legislation makes it unlawful for any employer to force anyone into retirement at any age short of the 'default retirement age' of 65, unless an earlier retirement age can be justified. Employers are required to notify employees of their retirement date between six months and one year ahead, and must also notify them of a new right to ask to work longer. If employees exercise that right, employers must carefully consider the request (see question 22, below). They do not have to provide reasons if they decide to turn the request down, but the employee does have a right of appeal.
What happens at 65 and older is currently a matter of some speculation, because an organisation called Heyday, backed by Age Concern, has challenged the legality of the 'default retirement age' in the courts, and the case has been referred to the European Court of Justice. A definitive decision is unlikely before 2009, though in the meantime the Advocate General (whose opinion is generally, but not invariably, followed by the full court) has come down in favour of the default in a similar Spanish case ('Palacios').
The situation causes potential problems because, where employers want a retirement at 65, and the employee in question does not, the latter is being encouraged to claim unfair dismissal and/or age discrimination within the time limit for making such claims, and then apply to have the case 'stayed' (put on hold) until there is a 'Heyday' ruling. If you find yourself faced with a similar situation, take legal advice.