Secretary of State for Work and Pensions, Liz Kendall, has revived the Pensions Commission stating that, despite the Triple Lock and auto-enrolment, serious challenges remain as nearly half of working people aren’t saving for their retirement.
Women, low earners, the self-employed and young people are at most risk of lagging behind, as more eople face complex retirement decisions without the necessary support. Liz Kendall said that retirement
should be “welcomed, and not feared”, and called for a system that delivers “dignity, security and hope for future generations”.
The Commission is being chaired by Baroness Jeannie Drake, Sir Ian Cheshire and Professor Nick Pearce, and is required to produce a long-term ‘roadmap’ to ensure that future pensioners have adequate ncomes in retirement. CSPA will be writing to Jeannie Drake to welcome her appointment, and we will be
making a written submission to the Commission in due course, under the banner of Later Life Ambitions (LLA).
You can read more about the Pensions Commission, including their Terms of Reference here – The Pensions Commission – GOV.UK
The NPC response to the Work & Pensions Committee’s report on the challenges and mitigations of pensioner poverty, call upon the Government to decide on, and ensure, a minimum level of retirement income that provides a “dignified, socially acceptable standard of living”.
Within days, Liz Kendall had also announced another review of the State Pension Age (SPA). The Government is required, under the 2014 Pensions Act, to carry out a review of the SPA – currently 66, but scheduled to move to 67 by 2028, and 68 by 2046 – every 6 years, but appears to have commenced a year early, after the last one concluded in 2023. CSPA gave evidence to the previous review, which was conducted by Baroness Lucy Neville-Rolfe, in 2022, pointing to people’s state of health as a necessary yardstick, alongside their longevity.
This review will consider whether the rules around the pension age are appropriate, based on the latest life expectancy data and other evidence, and will consider evidence from 2 reports:
- an independent report, led by Dr Suzy Morrissey, on specified
factors relevant to the Review of State Pension age - a report from Government Actuary’s Department (GAD) to examine
the latest life expectancy projections data
CSPA will be writing to Dr. Morrissey to congratulate her on her appointment,
and we will be making a written submission to her inquiry as LLA.
CSPA’s current policy position on the SPA is to support the NPC’s ’68 is too late’
campaign. You can ready more about it here – Retirement at 70? Yes, if you’re
Danish – CSPA and on the NPC’s website here – 68 is too late!
