The review of the state pension age (SPA) is expected to say savers should not be able to take their state pension early if they are ill, according to a report in the Financial Times.
The government is tomorrow set to publish the review of the SPA by former Confederation of British Industry (CBI) director general John Cridland.
Many pension providers have called on Cridland to look at a flexible SPA depending on the circumstances of individuals. Steven Cameron, director of pensions at Aegon, has said the review should allow for early access of the state pension at a reduced level if savers choose to take it early.
Labour’s shadow pensions minister Alex Cunningham also called for a variable SPA to be looked at, particularly for workers who have had hard manual labour jobs and have lower life expectancy.
However Cridland said last year in a speech that moving to a variable SPA depending on personal circumstances would be ‘horrendously complicated’.
According to the Financial Times, Cridland will recommend that people should not be allowed early access to their state pension if they are disabled or have had very long working lives in his report expected later this week.
He is instead expected to keep a universal SPA but provide additional support for groups such as carers.
Ros Altmann, former pensions minister, said it would be a shame for Cridland not to adopt a flexible SPA.
‘It is disappointing that there will not be flexibility in the state pension age access. The system makes no allowance for differential life expectancies across the regions of the UK and no allowance for different industrial occupational work experience,’ she told the Financial Times.