The Default Retirement Age of 65 has been scrapped, meaning that employers will no longer be able to dismiss workers due to their age.
From April 6th companies may face discrimination claims if they do not provide valid reasons for letting older employees go - a measure which could see older people put off choosing to find a care home.
Michelle Mitchell, charity director at Age UK, said that the axing of the Default Retirement Age is a "milestone" in terms of employee rights for older people.
"It will make a huge difference to the hundreds of thousands of workers aged 65+ who were at risk of being forcibly retired this year, giving them the freedom to choose when and how they want to retire," she continued.
A new survey by Age UK suggests that older Brits are more than capable of continuing to work in today's offices, with 43 per cent of those aged between 55 and 74 using the internet frequently.