Response to UK Government announcement on State Pension Review

Older People’s Commissioner for Wales, Rhian Bowen-Davies, said:

“The Pensions Review announced by the UK Government offers an opportunity to examine how we can create a sustainable system that ensures people have sufficient incomes when they retire and do not find themselves facing financial hardship or poverty, an issue for a significant number of older people.

“As part of this, it will be crucial to determine the level of income older people need to have a decent standard of living, recognising the key role the State Pension is likely to continue to play in this, particularly here in Wales.

“It is also important that the Review of the State Pension Age being undertaken alongside this work looks beyond life expectancy as a way of determining the qualifying age, placing a much greater focus on how healthy life expectancy impacts our ability to work as we get older.

“The gap between life expectancy and healthy life expectancy in the UK is currently more than 15 years, a figure that increases in deprived areas. Without action to close this gap, many people will simply be unable to work for longer, while others might put themselves at risk by continuing to work despite being in poor health, something that could potentially create other unforeseen costs due to an increased need for health and social care services.

“Furthermore, ageism and age discrimination within employment is still common, creating barriers that prevent older people from remaining in or returning to employment.

“Until these issues are tackled, many people will find it difficult or impossible to remain in or find employment as they reach their late 60s and may be at risk of financial hardship or falling into poverty as they approach State Pension Age.

“Any changes to the pensions system suggested by these reviews must therefore be accompanied by meaningful action to reduce health inequalities and end ageism and age discrimination, which restrict work and employment opportunities for so many older people.

“This would not only increase productivity and boost the economy, but would also provide opportunities for people to financially plan and prepare for their retirement more effectively.”