Response to interim report from Cridland on the review of SPA

The interim report of the Independent Review of State Pension Age, published 13th October, set out a clear analysis of the issues relating to the affordability and fairness of potential future increases in State Pension Age. It is forward looking and takes a broad perspective recognising the issues of fairness within and between generations. The interim report  – to which we have issued a response – sought research, insights and evidence to inform the final report.

The Centre for Ageing Better’s research shows that financial security is key to a good later life. This means sufficient retirement income will be vital for future generations. The new State Pension will provide a guaranteed minimum income for the majority of people in future, but for most people this will need to be supplemented by private income. Future generations will also need to work for longer if they are to enjoy a decent living standard. The report rightly identifies some groups who are more at risk of having insufficient income in later life and who are more likely to rely on the State Pension, including carers, people with disabilities, the self-employed, ethnic minorities and women.

We welcome the analysis set out in the Interim Report and are pleased it reflects many of the issues we set out in our briefing to the Review. We build on our earlier analysis to set out four key areas which we hope the final report will address in recommendations to the Secretary of State:

• Taking action to support people to work for longer and making clear the link between an increase in State Pension Age and the Government’s Fuller Working Lives strategy
• Communicating the purpose of the State Pension to the population and providing holistic information and guidance to support later life planning
• Maintaining the value of the State Pension to ensure it provides a minimum income to protect people from poverty in later life and consider making it truly universal
• Consider allowing for early access for those with poor long-term health or disability to mitigate any increase in State Pension Age.

“The interim report of the Independent Review into State Pension Age sets out a clear analysis of the possible impacts of any future increase in State Pension Age and how this will impact different generations.  It also makes clear the inequalities within generations, including differences in healthy life expectancy, the ability to save and contribute to pensions, and the ability to work until State Pension Age. These inequalities mean that any increase in State Pension Age requires other actions or mitigating policies to ensure more people do not struggle financially and experience financial difficulties in later life.”