"Research the Centre for Ageing Better carried out with the Institute for Fiscal Studies (IFS) last year revealed that nearly 100,000 more 65-year-olds are in poverty due to the most recent rise in state pension age to 66 for men and women between December 2018 and October 2020. This more than doubled the number of people aged 65 in absolute poverty than before the change.
"For a major government policy to have such a serious negative impact is deeply worrying. Naturally there is a lot of concern and caution that this process might be accelerated so that the state pension age jumps to 68 by the end of the 2030s. With the right action and support, the raising of the state pension age can be beneficial. Allowing older workers to continue making a valuable contribution to the workplace and UK economy for longer, and giving them the opportunity to earn additional income and boost pension pots.
"If the government is serious about further and faster increases to the state pension age, it also needs to be matched with a considerable improvement in access to work for people in their sixties: investing in tailored employment support for those out of work, expanding access to occupational health support, and bringing flexible work and carer’s leave proposals into legislation.
"Our report makes clear the consequences of raising the state pension age. It is important the government appreciates much needs to change about our current labour market before future increases. Failure to do so will mean that for a significant proportion of older people, the years leading up to retirement will be onerous and cash-strapped."
