Marvin OnumonuThe Investing and Saving Alliance (TISA) has warned that raising the state pension age while cutting tax incentives for private pensions could leave millions of future retirees struggling financially.
In its response to the third State Pension Age Review, TISA said policy decisions should not be based on life expectancy alone.
The group called for at least 12 years’ notice before any increase to the state pension age, more flexible early access for those with lower life expectancy, and stronger auto enrolment measures to help people build up adequate pensions.
Renny Biggins, head of retirement at TISA, said: “Raising the State Pension Age while simultaneously scaling back tax incentives for private pension saving risks creating a double whammy for future retirees.
“Without sufficient time and support to plan, many individuals — particularly those in lower-income households or with shorter life expectancies — could find themselves financially exposed, unable to bridge the growing gap between retirement and access to the State Pension.
“This approach risks undermining the adequacy and fairness of retirement outcomes across generations.”
TISA’s response included calls for a minimum 12-year lead time for any state pension age increase, early access options for those in poor health, and action to strengthen auto enrolment.
The group also said future changes to the state pension age must consider intergenerational fairness, as current workers could have to wait longer to access their benefits while supporting more retirees.
TISA warned against linking the state pension age to out-of-date life expectancy projections and said any new adjustment mechanisms should be carefully designed to account for unexpected events.
Biggins added: “The State Pension is a cornerstone of retirement income for millions, and we welcome the Government’s intention to ensure its long-term sustainability.
“But any changes must be part of a joined-up strategy that considers private pensions, health inequalities, and the broader economic landscape.
“TISA stands ready to work with Government and industry to ensure that future reforms are fair, sustainable, and support better retirement outcomes for all.”
