Statement from Personal Finance Society chief executive Keith Richards

20 July 2017

Statement regarding yesterday’s decision by the Government to bring forward the increase in the state pension age:

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 reform.

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 retirement.

We also call on the Government to consider another of the Cridland report’s recommendations - the ‘mid-life MOT’ - which the financial advice profession in particular would be poised to partner with the Government on, if and when it chooses to proceed with this initiative.