Brits are being warned over pensions after a report highlighted the “increasingly unfair” impact of the rising State Pension age. A House of Commons report released on July 11 stated: “This is a pivotal time for pensions. The population is ageing, contributing to rising State Pension costs. That the State Pension is rising at the same time as inequalities in health and life expectancy are widening mean that the impact of this is extremely unfair.
“We recognise that there are challenges ahead, with an ageing population meaning rising costs in a tight fiscal environment. In future decisions, on the State Pension and other state entitlements for pensioners, it will be important for the government to balance sustainability, adequacy and fairness.
“The government refers to the State Pension as a foundation for private pension saving and says its ‘revealed objective’ is for a slightly higher level of state pension than now, delivered via its commitment to the triple lock for the rest of this parliament.”
It comes amid a rise in pensioner poverty from 2010 onwards.
Pensioners on low and fixed incomes are facing cost-of-living increases, have been forced to cut back on food, energy use, and socialising, which has had a knock-on effect on health.
Changes are underway meaning state pensioners could save £58.32 next April following changes that will be made under new Prime Minister Andy Burnham.
Pensioners will be given a special exemption to income tax, alongside protections offered by the triple lock.
The Commons report says in May this year challenges were identified including: