Both sides in the debate cite the experience of America, which banned age discrimination in 1967 and abolished compulsory retirement for most workers in 1986.

ECONOMIST: Age discrimination

Lord Hunt's group concluded that any scheme of compulsory retirement would require legislation, but that a voluntary scheme could be introduced for permanent leave of absence.

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Mr Hutton may face the difficult task of pushing forward legislation delaying the official retirement age or introducing compulsory saving for pensions.

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This is because surveys suggest many people view the level of compulsory savings as enough in itself to provide for retirement, rather than a starting point.

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There have been no compulsory redundancies, with workers offered other jobs, redundancy or early retirement.

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In principle, such a compulsory age is discriminatory, but the European directive allows countries to set a national retirement age.

ECONOMIST: Age discrimination