We recognise the rationale for the Government's decision
yesterday to bring forward the increase in the state pension age,
as a way to ease the burden on an unsustainable system in need of
As life expectancies continue to rise, and with household
savings rates at record lows, thousands are facing the prospect of
severe levels of poverty in later life caused by a state pension
train crash waiting to happen.
Following the release of the Cridland review, the Personal
Finance Society wrote to the Chancellor, urging the Government to
adopt many of its pragmatic recommendations.
Pushing the state pension age back by another year will mean
that people will need to think carefully about their long-term
pensions needs, and the Government owes it to the public to take
proactive steps to help people plan ahead to counteract the
inevitable reduction in state support.
Yesterday's announcement was an inevitable step, but it needs to
be backed by further action to mitigate the impact on thousands who
will ultimately be affected in the future, including a campaign to
educate consumers about the need to save for their life in
We also call on the Government to consider another of the
Cridland report's recommendations - the 'mid-life MOT' - which
thefinancial advice profession in particular would be poised to
partner with the Government on, if and when it chooses to proceed
with this initiative.
Keith Richards, Chief Executive of the Personal Finance