A new report claims companies are using mandatory retirement policies to lay off older workers during the recession.

According to Age Concern and Help the Aged, one in seven managers questioned are planning to use the policies to cut jobs, even though most people believe they should have the right to work beyond retirement age.

A second study of almost 1,000 adults over the age of 50 reveals nine out of 10 said they should be allowed to continue working past 65 if they wanted to.

Michelle Mitchell, charity director for recently-merged Age Concern and Help the Aged, said: "It is wrong-headed and economically unwise for employers to force people who want to work out of a job just because of their age.

"Older workers make a huge contribution to the economy and will have the skills and experience needed to boost recovery when we come out of recession."

She added that although the Government has backed older people working by bringing the Equality Bill before Parliament it must do more to end forced retirement.

A Department for Business spokesman said: "We will review the effectiveness of the default retirement age in 2011. If evidence shows it is no longer necessary, we will remove it."

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