A Work and Pensions Select Committee report has recently been published, urging the Government not to change State pension age from 65. The Committee believes that the only way people will start to save for the future is if they have faith in the State pension system.
The Government apparently replied that the planned simplification of pensions and the proposed pension protection fund would give greater faith in company pensions.
Our View
The Government seems to have avoided the question of raising (or even reducing) the State pension age. However, we do not believe that having a strong State pension system will help encourage Britons to save - quite the opposite, in fact.
There are European Directives around at the moment that, if implemented in the UK, could affect State pension age anyway. We understand that the Government is currently consulting on the Directive regarding the implications for the UK.