State Pension Age Increases Could Leave Thousands in 'Chasm of Ill Health'
Thousands of individuals across the UK are at risk of missing out on crucial state pension payments precisely when they need them most, according to stark warnings from experts. This alarming situation coincides with new figures from the Office for National Statistics (ONS), which reveal that both men and women are now expected to live in what is classified as "good" health for fewer than 61 years.
Rising Retirement Age Meets Declining Health
The official state pension age is scheduled to increase to 67 in 2028, with a further rise to 68 planned for 2046. Sir Steve Webb, a former Liberal Democrat pensions minister and current consultant at LCP, has voiced serious concerns that additional increases could create what he describes as a "chasm of ill health." He argues that as people are forced to wait longer to retire, they may face extended periods of poor health without adequate financial support.
"Fiscal pressures are leading governments around the world to hike state pension ages, but this risks creating a growing chasm of years in poor health before the state pension kicks in," Sir Steve stated. "Benefit support for people under pension age is very meagre, and substantially below the rates available to pensioners."
He further emphasized that the government must proceed with extreme caution regarding any further changes to state pension ages to avoid condemning growing numbers of people to living on the breadline for years before they can access their pension.
A Sharp Decline in Healthy Life Expectancy
Stuart McDonald, also of LCP, highlighted that the latest ONS data should serve as a significant "wake-up call" for policymakers. He pointed out that healthy life expectancy has fallen sharply in recent years and is now at the lowest levels recorded since the data series began in 2011-13.
"The cost of ill health is rising," McDonald added. "Increased investment in keeping people well for longer would be to the benefit of individuals, the NHS, the taxpayer and the economy."
Government Response and Support Measures
In response to these concerns, a Department for Work and Pensions (DWP) spokesman outlined the government's commitment to tackling poverty at all ages. They noted that individuals who have not yet reached the state pension age can access a range of support options, including:
- Universal Credit
- Other means-tested benefits
- Disability-related benefits
The spokesman also detailed measures aimed at alleviating cost-of-living pressures, such as increasing the national minimum wage, providing a £150 reduction on energy bills, and launching a new £1 billion Crisis and Resilience Fund designed to act as a safety net for those in crisis situations.
This complex issue underscores the critical balance between fiscal responsibility and ensuring the well-being of citizens as they approach retirement, with thousands potentially caught in a precarious gap between declining health and delayed pension access.
