Charity responds to state pension reform plans

Age Scotland has today published a briefing setting out its views on the Coalition Government's proposals for reform of the State Pension system.

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Charity Policy spokesman Callum Chomczuk said:

"Broadly speaking Age Scotland welcomes the UK Government's announcement on pension reform. A flat rate, single tier pension should make things much less complicated and ensure the poorest pensioners get a decent income without having to fill in complex forms to claim pension credit. It should reward people who work and save, and ensure that for future generations, the threat of means-testing penalties on their private pensions on retirement will be almost completely lifted.

"We are however disappointed that existing pensioners have been overlooked and will not benefit from the single tier State Pension. We will continue to press for improvements in the position of those who have already retired.  Across the UK there are currently 1.7 million older people living in poverty and we expect the government set out a timetable for the reduction and abolition of pensioner poverty and a viable strategy for achieving this.

"Age Scotland accepts that as life expectancy increases it is reasonable to consider extending working lives but we do not support an automatic increase in pension eligibility age linked to average life expectancy. There are huge disparities in life expectancy across the country and between different groups, and poorer people stand to lose a greater proportion of their retirement income as the state pension age rises, with many people perhaps not even receiving their pension. Increases in pension age should be aligned with the health of the population rather than average life expectancy to ensure people are well enough to work."

Download Age Scotland briefing on the UK State Pension Reform White Paper