Business: Bring back the retirement age Longer working is widely seen as necessary to keep income tax receipts up and reduce the burden on pension funds as Britain's population ages. Over a third of workers polled recently by insurer Canada Life Group said they would probably work past 65 to reflect. But more people staying on at work for longer is causing a bottleneck at the lower end of the career ladder, with young people missing out on promotion opportunities because their older colleagues are not moving on. Tom Flanagan, partner and Irwin Mitchell's head of employment, said: "It is clear that the use of a default retirement age before the law changed was widespread and that many welcomed the impact it had on the balance of the workforce and promotion opportunities." Mr Flanagan pointed out that over 80pc of those firms which removed their retirement age, did so not because it was right for their business and employees, but solely because of the law change. Under the new rules, companies can still justify having a retirement age - a common example is crane operators needing to retire at a certain age for safety reasons - but many firms appear reluctant to bother with the paperwork. Mr Flanagan said: "Given the choice most companies would rather have a retirement age, more significantly, firms are not willing to take what they perceive as a risk and attempt to legally justify a retirement age." Other survey findings showed almost two thirds of organisations operated a default retirement age before being forced to scrap it, while one in five firms said they still expect people to retire at a certain age. Separate research earlier this year showed only one in three pensioners stop working aged 65, because they cannot afford to give up their jobs. The study by research group Mintel showed just one in eight people had retired last year because they could afford to. Joanne Segars, the chief executive of the National Association of Pension Funds (NAPF), which represents pension companies, said many people reach retirement age and realise that they simply cannot afford to stop working. Sadly many people are finding their retirement plans turn out to be a mirage. They get near, realise they can't afford it, and see the day when they'll stop working slip further into the distance," she said. The value of pensions has been squeezed by the ongoing economic slowdown.