PFS chief executive Keith Richards has issued a response
to John Cridland's Independent Review of the State Pension
Age report, which was released on 23 March 2017:
"Successive governments have failed to address a state pension
train crash waiting to happen, and it is time for the Government to
act swiftly and decisively in response to the Cridland report's
disturbing but broadly pragmatic recommendations.
The report exposes the fundamental mismatch between the need to
encourage people to plan and save for a longer life in retirement,
and the Government's short-termist pensions policies such as
pension freedoms which encourage people to live for today.
For too long, political motivations have prevented any reform of
the triple lock, which has clearly become unsustainable. Linking
pension increases to earnings seems a more fiscally responsible and
common sense approach and we'd urge the government to make this
happen sooner rather than later.
Establishing a link between the pension age and longevity
expectations has proved effective in countries including Sweden,
Norway and Germany, and will introduce much needed sustainability
to our system.
A mid-life MOT will help people plan for their later lives,
particularly the vulnerable in our communities, and the financial
advice profession stands ready to partner with the Government to
deliver this service.
Without action, we are facing the prospect of severe levels of
poverty in later life, and it is time that pensions regulation is
considered in the context of long-term social and economic trends
rather than treated as a political football.
The Government needs to seriously consider the idea of an
independent pensions commission to come up with sustainable
measures aimed at encouraging people to save more earlier, and not
squander their wealth earlier in life."