A House of Commons report has warned that the rising State Pension age is having an “increasingly unfair” impact on pensioners. The report, released on July 11, highlights that while the State Pension is rising, inequalities in health and life expectancy are widening, making the situation “extremely unfair.”
Key Findings from the Report
The report states: “This is a pivotal time for pensions. The population is ageing, contributing to rising State Pension costs. That the State Pension is rising at the same time as inequalities in health and life expectancy are widening mean that the impact of this is extremely unfair.” It also notes the government’s commitment to the triple lock for the rest of this parliament, which aims for a slightly higher level of state pension.
Pensioner poverty has risen since 2010, with those on low and fixed incomes cutting back on food, energy, and socialising, affecting their health.
Proposed Changes Under New Prime Minister
Under new Prime Minister Andy Burnham, changes are underway that could save state pensioners £58.32 next April. Pensioners will receive a special exemption from income tax, in addition to protections offered by the triple lock.
Challenges Identified
In May this year, the Commons report identified several challenges: many working-age people are projected to reach later life without sufficient private pension savings; women, carers, self-employed, disabled, and ethnic minority groups face pension barriers; low-paid and part-time work reduces saving ability; and retirees face uncertain decisions over drawing savings.
