Office workers should wait longer to get their pension compared to people in physically demanding jobs, official review suggests, as the latter are more likely to develop health problems
- The rules could be changed to allow manual workers to access their pot early
- An independent report warned the ‘triple lock’ will see its cost increase rapidly
Office workers face waiting longer to get their state pension than people in physically demanding jobs under proposals from an official review.
The Government should look at changing the rules to allow manual workers to access their pot early, Tory minister Baroness Neville-Rolfe said.
She recommended that those ‘who have performed physically demanding roles over many years’ should be allowed to access their pension early due to a higher likelihood of developing health problems.
Her independent report also warned that the Government’s state pension ‘triple lock’ – which guarantees that it rises by the highest of inflation, earning growth and 2.5 per cent every year – will see its cost increase rapidly in coming years.
The Cabinet Office minister’s review said that under the triple lock, expenditure on the state pension would rise to 7.5 per cent of GDP by 2072.
Office workers face waiting longer to get their state pension than people in physically demanding jobs under proposals from an official review (file image of people working in an office)
The Government should look at changing the rules to allow manual workers to access their pot early, according to Tory minister Baroness Neville-Rolfe (pictured)
She recommended capping the level at 6 per cent and increasing the state pension age to 68 between 2041 and 2043.
The Tory peer also warned that under current spending projections, the age may need to rise to 69 by 2048. Despite the concerns, No 10 said yesterday that there was ‘no change at all’ to plans to maintain the triple lock.
The Prime Minister’s deputy spokesman said: ‘We are committed to ensuring older people can live with dignity and respect. In April, the state pension will see its biggest-ever rise as it increases by 10.1 per cent.’
READ MORE HERE: Born after 1980? Brace yourself to work until 70… Government review warns ballooning state pension costs could mean higher retirement age by 2050s
It came as Work and Pensions Secretary Mel Stride delayed deciding when to hike the state pension age to 68 after worrying data revealed a sharp predicted drop in life expectancy.
He confirmed yesterday that no decision would be taken until after the next General Election due to not having the ‘best evidence available’ yet.
New figures from the Government Actuary’s Department show the average life expectancy for those reaching the state pension age in 2050 has fallen by almost three years in less than a decade.
Since the last review in 2017, men and women have seen a drop off of 2.8 years and 2.6 years respectively.
The Government was looking at bringing forward plans to increase the pension age to 68 between 2044 and 2046.
But Mr Stride told MPs: ‘Given the level of uncertainty about the data on life expectancy, labour markets and the public finances, and the significance of these decisions on the lives of millions of people, I am mindful a different decision might be appropriate once these factors are clearer.’
He also said the peer’s report was unable to take into account the long-term impact of ‘challenges’, including the pandemic and inflation linked to Russia’s invasion of Ukraine.
Mr Stride said the report ‘highlights an important challenge: a growing pensioner age population and the affordability and fiscal sustainability of the state pension’.
‘Since the first state pension age review was undertaken in 2017, however, the increase in life expectancy has slowed,’ he added.
‘Life expectancy is still projected to improve over time, but compared to the last state pension review, these improvements are expected to be achieved at a slower rate.’
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