Government has confirmed that there would be no Default Retirement Age after October 1, 2011. Retirement is now a choice not a compulsion.

Once the law becomes effective, employers cannot dismiss an employee just because they have reached the retirement age. An employee can be dismissed because of redundancy, performance or anything else, but not because of their age. However, employees can always choose to retire.

Removal of DRA is going to influence a lot of things – it will have a direct effect on how people plan for their retired life, pension plans and most importantly on mortgage terms and equity release.

According to the rule employers cannot dismiss an employee because of age, but that does not mean mortgage lenders will revise their terms and agree to extend the loans beyond the age of 65, will they? Even if they agree, they would introduce stricter criteria to verify the worthiness of the borrower. They would certainly like to check the details of pension plans and other such things.

There is another forecast: removal of DRA may add to the uncertainty of the job market. Things have not improved much after recession; now removal DRA is likely to have an impact on the employment stats.

It will obviously have a direct or indirect effect on the housing market as well. If the employment stats remain low or stagnant, default mortgage borrowers may not have luck finding a better job. People who are facing repossession may also find it difficult to find a buyer to sell their properties fast.

If the individual buyers are not able to offer a good deal, you can always contact cash home buyers to sell your house quickly and solve your immediate financial crisis. Cash buyers will not ask whether you are retired or employed! Good for sellers.