CUT RETIREMENT AGE TO 61, BORIS
Ex-minister’s plea for those too sick to work
FORMER Tory pensions minister Ros Altmann is calling on Boris Johnson to reduce the minimum pension age to 61.
It would mean anyone with 45 years of National Insurance contributions could retire five years early on a lower pension if they were unable to work because of ill health.
Under the present system one in seven 65-year-olds have been pushed into poverty because the pension age is now 66 for both men and women. That will go up to 67 in 2026.
Research by the Institute for Fiscal
Studies showed 100,000 older people fell below the poverty line in 2020 as 700,000 had to wait the extra year before getting £142 per week.
Under Baroness Altmann’s scheme those who could not continue working would qualify for a pension of around £84 a week instead of having to rely on benefits. The plan could be designed so they get the full amount on turning 66.
Those who could show shortened life expectancy would be able to claim the full whack from 61. The plan could be paid for from the £4.9billion saved by raising the pension age. Official figures show
that healthy lifespans are as low as 52 for people in deprived areas but 70-plus for wealthier regions.
Baroness Altman said: “Forcing everyone to wait longer because average life expectancy has risen ignores this 20-year differential.
“Many have had hard manual working lives which took a toll on their health so flexibility in state pension starting age is required.
“This is about social justice as well as social support.”
Caroline Abrahams of Age UK said: “We are deeply concerned about those who have to give up work due to poor health or caring responsibilities before reaching state pension age. It is only fair they are granted early access to their state pension if they have no realistic prospect of working again.”
A government spokesman said: “For those who can’t work, we provide a strong welfare safety net, including universal credit.”
UK pensions are the lowest in the developed world – even though the abandoned triple lock will return.
It means pensions rise with inflation, earnings or 2.5%, whichever is higher.
And, with prices soaring, that is set to give the retired nearly £1,000 extra next year.