Pensions - Articles - Comment on Labour statement on State Pension age increase

 “However, the fact remains that the average life expectancy has been on the increase for many decades. The SPA has remained fixed at 1948 levels throughout this time, had to increase if it was to remain affordable for the future. In many respects successive Governments have failed to recognise this as a fact, to the point they are now trying to effect a “catch-up” almost regardless of what anticipated longevity trends are over the next few years.
 
 “There is also the problem inherent in Labour’s suggestion of defining what is, or is not, a “demanding job”. Clearly very physically strenuous work could be but, then so could many mentally stressful occupations, such as teachers or City traders. At the end of the day it does depend on the individual and their ability to cope with the work.
 
 “A better system might be to allow the SPA to rise but, allow everyone the option of effectively taking early retirement from a minimum age of 66 with a reduced rate of pension. If we can allow pensioners to defer taking their pension beyond their SPA, with an increase of 5.8% on their pension for each complete year they delay. We could surely do the same in reverse, with a 5.8% reduction for each year the pension is claimed below the SPA.”