PLSA: halt further increases in State Pension age

The PLSA highlighted that the UK is already set to have, at 68, the highest State Pension age of any OECD country and says that "raising it further would cause unacceptable detriment to two particular groups of people".

These include those with lower than average life expectancies, who might only receive very little, if any, State Pension and those with lower than average healthy life expectancies who might struggle to stay in the labour market before the State Pension age.

In its response, the PLSA recommended that the triple lock is replaced by indexation in line with earnings so that the state pension maintains its current value of around 30% of average (median) earnings.  

Graham Vidler, Director of External Affairs at the PLSA, said: “We believe the fairest approach for current and future generations of pensioners is to drop the triple lock and halt further increases in State Pension age.

“A State Pension maintained at 30% of average earnings can provide a strong basis for future retirement incomes. Removing the triple lock can keep it affordable without the need to increase State Pension age still further to the detriment of people with poorer health.

“We also believe that proposals for a variable pension age, while attractive in tackling socio-economic differences, would sacrifice the simplicity and clarity of the current system. On balance, we support the current system of a single State Pension age for all.”