Millions of over 60s could be affected as the Government’s state pension age review reaches a crucial stage.
Experts warn that any rise in the pension age could leave many over-60s worse off.
Catherine Foot, Director of the Standard Life Centre for the Future of Retirement, said it is vital that any changes “do not deepen inequality or hardship,” with thousands of people in their early 60s already living in poverty.
The warning comes as the Third State Pension Age Review closes its call for evidence today – a key step in deciding when people will be able to claim their pension in the years ahead.
Ms Foot said: “The State Pension is at a critical juncture with questions over its long-term affordability and sustainability.
“In our own deliberative research which asked people what they thought was ‘fair’ there was a broad consensus that future pensioners should enjoy the same guarantees as those currently in retirement, striking a balance between State Pension age and life expectancy.”
Today is the last chance for people and organisations to share their views with the Independent Review looking at the future state pension age.
The review, led by Dr Suzy Morrisey, aims to decide what factors the Government should consider when setting the age people can start claiming their state pension.
State pension age review hits ‘critical juncture’
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GETTYIt’s a difficult task, as the review must balance several priorities, including how long people are living, how many are still working in later life, and whether the system remains fair and affordable for everyone.
Britain’s job market is creating new challenges for older workers, with many people over 50 finding it hard to stay in work or get back into employment.
Recent figures show the number of people on company payrolls has dropped by about 0.5 per cent over the past year. Employers are being cautious about taking on new staff, even though there haven’t been major job losses.
These conditions raise important questions about whether people can realistically keep working until they reach state pension age, especially as health problems and physical demands often increase in later life.
Britain’s job market is creating new challenges for older workers
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GETTYMs Foot added: “Even at the current level, working until State Pension age is not easy or achievable for everyone.”
The review must examine private pension savings alongside State Pension age considerations, as both elements determine retirement security.
Ms Foot noted that the Independent Report should acknowledge the intergenerational agreement where working-age taxpayers support retired citizens.
Public consultation revealed widespread agreement that future retirees deserve equivalent protections to current pensioners.
Any future modifications require comprehensive communication plans to safeguard the financial stability of those approaching retirement
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GETTYShe explained that policies need to be in place to help more stay in work until reaching State Pension age and to support people financially who are unable to work until they reach this milestone, given we know a quarter of all 60–65-year-olds already live in poverty.
She said: “It’s also important that if the Government decides to make any changes to State Pension age arrangements in the future that there is a clear communication plan in place to ensure the financial security of those approaching retirement is protected.”
Any future modifications require comprehensive communication plans to safeguard the financial stability of those approaching retirement.