Call to raise state pension age to 71 shows political parties must detail plans: Aegon

retirement sign

Aegon has made a fresh call on the UK’s political parties to detail their plans over the future of the state pension.

The call comes following the release of a new report (The International Longevity Centre’s Healthy Ageing and Prevention Index) claiming the retirement age may need to rise to 71 by 2050 for middle-aged workers across the UK.

Kate Smith, Head of Pensions at Aegon, said:

“We know from our Second 50 research that over 95 per cent of us expect to depend on the State pension in later life – so this report will be concerning for millions of people.

 
 

“Pushing back the state pension age to age 71 would be a shock for many – when they are expecting to receive this from age 67 or 68. Some will only receive it for a short time, others not at all.

“This report, published in an election year, highlights the need for the political parties to detail their plans for state pensions ahead of the UK general election. This is too important an issue to be kicked into the long grass. People need to know where they stand and what this means for their later life, giving them plenty of time to adjust their working and savings plans.  

“Raising the state pension age feels a like very blunt instrument – and would likely penalise those most in need.

 
 

“This report from the International Longevity Centre shows that we all collectively and individually would benefit from looking more closely at the uncharted territory of later life. Aegon’s Second 50 report offers a strong framework for this much needed discussion to be built around.

“The Second 50 is difficult enough to navigate given the longer working lives many of us face. We cannot look at what’s gone before to know what to do. Certainty around the state pension is vital.”

Research released yesterday by the International Longevity Centre detailed that the state pension needs to increase to 71 by 2050.

 
 

Peter Glancy, Head of Policy, Pensions & Investments at Lloyds Banking Group has also responded to this news commenting: 

 “We predict in our latest Retirement Report that more than one in three workers won’t have enough income in retirement to cover even a very basic standard of living – which will mean working much longer than they had hoped.  

For most people who will have enough to get by, the State Pension makes up a very large proportion of that retirement income, so pushing the State Pension age back to 71 means they’d need to build up a bigger private pension pots as a ‘bridging income’ for a better chance of retiring before then.”

 
 

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