Having a compulsory retirement age for UK workers stands in complete contradiction to the nation’s pension needs, it has been claimed.

According to Age Concern, people are having to work longer because of pension deficits, yet employers can legally force them to retire at the age of 65.

A female spokesperson for the charity said the government is actually encouraging people to work past retirement age.

However, it is refusing to chance its stance on compulsory retirement, with regulations stating that workers can be dismissed at 65 without redundancy payments.

"It is completely contradictory," she stressed, insisting "It just doesn’t add up."

According to research published by Aegon, 61 per cent of people between the ages of 50 and 65 expect to carry on working in some capacity after they reach retirement age.

Perhaps surprisingly, 12 per cent said they would like to embark on a completely new career in their retirement.