Small business owners have been warned that forcing workers who are over 65 into mandatory retirement could harm their company.

Recent research by Age Concern and Help the Aged has found that around 15% of employers plan to use mandatory retirement policies to cut their workforces.

"It's 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," said Michelle Mitchell, charity director for Age Concern and Help the Aged.