Commenting on the TUC finding that one in eight people are forced to stop work before they reach pension age due to ill health or disability, Aegon’s Pensions Director Steven Cameron, said:
“The findings in the TUC report raise an important issue around State Pension benefit accessibility. One in eight people are forced to retire early due to medical reasons, and with the State Pension age on an upward trajectory, the number of people unable to stay in work till their State Pension kicks in is likely to rise. This has serious implications for people’s ability to provide for themselves in early retirement. Aegon believes that all individuals should have the choice of taking their State Pension from their early 60s, at a reduced level to make this financially neutral for Government.
“The State Pension is a crucial safety net for people in retirement, with almost half* of pensioners’ income coming from state benefits. The inflexibility of the State Pension system is at odds with the Government’s wider ‘pension freedom’ agenda which allows individuals free access to private pensions from as early as age 55. As the State Pension age continues to rise, it’s important to free up State Pension access to allow individuals to fit their state as well as private pension around their personal circumstances.
“The truth is that the current landscape is a challenging one for those approaching retirement, and as such, given the choice, many people want to work for as long as possible to accumulate a decent provision. Our research showed that the proportion (34%) of 50-64 year olds expecting to retire between 66 and 69, was more than double those who expect to retire earlier, between the ages of 61-64 (13%)**. But as the TUC report highlights, not everyone is lucky enough to have a choice. We need a permanent solution for those who simply are unable to work into their late 60s, as opposed to idly standing by as people struggle medically and financially with later life.”
*Pensioners' Income Series, 28th June, 2016
**Retirement Income Report, 2016, 905 50-64 year olds
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