WE'RE living and working longer than ever before.

According to the Office of National Statistics, by 2011, 35 per cent of the population will be aged over 55.

This, of course, puts pressure on our already rickety pension system.

The question now being asked is who can afford to retire?

Early retirement is seen as a luxury and the common philosophy is that we must work until we drop if we have any hope of enjoying a decent standard of living in our old age.

Surprisingly, it is not unlawful to discriminate against an employee in the workplace based on age.

Far too often older employees who have extensive skills and qualifications are passed over in favour of younger, less experienced colleagues.

It can also be very difficult for older employees, particularly those in their fifties and sixties, to obtain new employment.

The law, until recently, was even tougher for those who are over 65.

If they were still in employment and their employment was terminated, they could not bring a claim for unfair dismissal or a statutory redundancy payment.

However, a recent landmark case challenged this legislation on the basis of sex discrimination.

Employees who are over 65 and still working now have increased protection in the workplace.

Unless their employer follows a fair procedure and the employee wishes to retire, it is currently more difficult to dismiss them.

Also the government must introduce anti-age discrimination laws by December 2006 at the latest. This will protect employees of any age from being discriminated against for a reason connected with their age and will apply to recruitment, selection for promotion, training opportunities, and so on.

In December 2002 the government published its pensions Green Paper.

The recommendations incl-ude the abolition of compulsory retirement at 65, allowing people to continue working on a part-time basis while still drawing a pension and giving people the option to take their state pension five years later while benefiting from a 50 per cent increase in the weekly payment.

Even though older employees will soon enjoy enhanced rights, one thing is very clear - today's workforce cannot sustain the increasing numbers of people retiring and depending on the state pension. A radical overhaul is necessary.