The Department for Work and Pensions (DWP) has published an action plan aimed at improving communications around the state pension age.
This follows recommendations from the Parliamentary and Health Service Ombudsman’s (PHSO) investigation into historical communications with women affected by changes to the state pension age.
The plan sets out a new strategy for providing clearer, more timely and personalised communications on the state pension, with a particular focus on future changes to the age at which people receive this benefit. It also recommends improvements to complaints handling.
This strategy sets out a plan to embed lessons learned from the PHSO investigation into its future policy and communication activity.
The publication comes as the Government prepares for the next independent review of the state pension age, with debate continuing over the long-term affordability of the state pension amid demographic pressures and the ongoing commitment to the triple lock. Following Keir Starmer’s announcement that he would be stepping down as prime minister, speculation has risen as to whether his replacement – widely expected to be Andy Burnham – will look again at the triple lock.
Broadstone, head of policy David Brooks, says this action plan is “a positive step” towards ensuring people receive clearer and more personalised information about their state pension age and any future changes.
He says: “Good communication is essential, particularly given the importance of the state pension in many people’s retirement incomes, and it suggests lessons have been learned from previous changes to SPA.”
Brooks said scrutiny of state pension policy was likely to intensify as policymakers consider the long-term sustainability of the system.
“An ageing population, rising state pension costs at a time of fiscal strain and the continued commitment to the triple lock mean there will be increasing focus on whether future increases to the state pension age should be accelerated,” he adds.
He says that if further changes to the state pension age are recommended, “effective communication cannot be an afterthought”, arguing that people need sufficient notice to make informed decisions about work, retirement and long-term financial planning.
Brooks also stressed that while the state pension provides an important foundation for retirement income, targeted support such as pension credit and housing-related benefits will continue to play a vital role in tackling pensioner poverty, making effective communications around those benefits equally important.
“There is also a strong case for embedding financial education earlier in life, so people understand pensions and long-term saving well before retirement comes into view. Starting sooner gives individuals more scope to build a meaningful retirement pot through consistent contributions and compound growth.”
