Labour Shadow pensions minister Gregg McClymont says Government plans to accelerate the rise in the state pension age will undermine public confidence in savings policy.
Former Shadow pensions minister Rachel Reeves has lobbied for a delay in the increase in the state pension age to 66 until 2022 due to concerns about the impact minister’s revised proposals will have on women.
Amendments to the Pensions Bill announced earlier this month delay the timetable for increasing the state pension to 66 by six months to October 2020. The state pension age for women will rise from 60 to 65 in November 2018.
Speaking at the NAPF conference last week, McClymont said the DWP’s move does not go far enough and undermines the credibility of UK pensions.
He said: “This is an issue of fairness but it is also an issue of the pension system’s credibility. How can we expect to encourage pension saving if there is uncertainty in people’s minds about the rules of the game?
“The Pensions Policy Institute has been clear that 10 years’ notice should be given for changes such as these.”
McClymont, MP for Cumbernauld, Kilsyth and Kirkintilloch East, told delegates he supports “in principle” Government plans to introduce a single-tier basic state pension worth around £140 a week.
He said: “The simplified state pension in principle is an excellent idea but the devil will be in the detail. There will also inevitably be winners and losers and the Government will have a challenge to ensure there is broad public support for the reforms.”