State pension payments increase in April (Image: Getty)
Policy experts have discussed major changes to the state pension with MPs. The DWP was warned that there are discrepancies in the current system, with some people missing out on support.
A panel of experts spoke to the Work and Pensions Committee about the increase in the state pension age. The access age for the benefit is going up from April 2026, moving up in stages from the current 66 to reach 67 by April 2028.
Legislation is also in place for the access age to move up again, from 67 to 68, between April 2044 and 2046. One pressing question with making people wait longer for their state pension is that this may force people to stay in work longer, even while their health may be declining.
The experts discussed what support is available in the workplace to help people continue working longer. Sarah Vickerstaff, professor emerita of Work and Employment at the University of Kent, said it can be a “very complicated” process for a person in their 60s to decide whether to continue working.
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She explained the issues that people have to think through when setting their retirement date: “It is a mixture of their health, the health of their family members, any caring responsibilities they have, their financial situation and what other things they might want to do.”
People delaying their retirement
She said people often have to put off retiring longer than they had originally planned to. The expert said: “Often people imagine in advance that they will retire earlier than they actually do. They look ahead and think, ‘Well, I will probably go at 63,’ but when they get to 63, they think, ‘Maybe I will go at 66.’ “
One means of help that may help keep older employees in work is that employers are legally bound to provide ‘reasonable adjustments’. The company must provide for a disabled employee to overcome a disadvantage that affects their ability to do their work.
But Ms Vickerstaff warned that there is a danger that people do not understand the criteria for accessing these adjustments. She raised the question: “Is it just that you are defined as disabled by law, or is it wider than that?”
These adjustments can include arranging equipment or services to support you, or finding a different way for you to complete a task. The academic gave an example of a health condition that may not qualify for reasonable adjustments.
People don’t qualify
She said: “Think about the very large numbers of people in their 60s with musculoskeletal problems. A lot of them—like me, with osteoarthritis—are not labelled or do not qualify as disabled under equalities legislation, but our ability to work may be quite severely impacted.
“The example I always give is that a stand-up/sit-down desk that allows me to vary my work position is a relatively small and inexpensive adjustment, but one that might have an influence on my ability to carry on working. Let’s make better use of the things we already have.”
State pension payments will be going up 4.8 percent in April, thanks to the triple lock policy. This policy ensures payment rates go up in line with the highest of three measures: 2.5 percent, the rise in average earnings or inflation.
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