Report suggests early access to State Pensions

The International Longevity Centre (ILC) has issued a report that suggests the Government should allow people early access to their state pensions.  They argue that it would encourage people to work longer.

Citywire summarised the ILC’s suggestions –

“It has published a report, Gradual Retirement and Pensions Policy, which surveyed 1,000 people and found 55% supported a ‘graduated’ state pension, allowing savers access to their pension before they retire and enabling them to reduce their working hours.

‘Many older people recognise the benefits of staying in work for longer but nevertheless perceive the government’s current strategy as a threat to their hard-earned entitlements,’ it said.

A Department for Work and Pensions spokeswoman argued that by abolishing compulsory retirement at 65 the government had already introduced flexibility around retirement saving.

‘The state pension is already graduated. It may be taken at any time after the state pension age, and the government offers generous incentives to those people who take their state pension later,’ she told the Telegraph.

In April the government rejected calls for early access to pensions, arguing there was ‘limited evidence’ the measure would improve the level of pension contributions.”