Pensions - Articles - Aegon and Aviva call for more flexibility in State Pension

Aegon joins Aviva to call for more flexibility in state pension but is focussing on giving people the option to take their state pension early subject to a reduction in its weekly amount to make it financially fair.

 Steven Cameron, Pensions Director at Aegon comments: “In the private pension space, pension freedoms have proved hugely popular in allowing people to take more control over when they start drawing their defined contribution pension and how much they take as their retirement progresses. But this is not mirrored in the state pension where despite the state pension age increasing there is no flexibility to choose to take it early. The plight of the WASPI women has shown the hardship caused by having to wait longer for the state pension to kick in.

 “We would like the Government to explore allowing people to take their state pension from an earlier age, perhaps 63, at a reduced amount to reflect the fact it is starting earlier and will be paid for longer. The older the state pension is, the more difficult it will be for those in stressful or manual occupations to keep working until state pension age. Offering early access at a reduced level could be a big help to many thousands.

 “There is a need to make sure people don’t end up with an income from state and private pensions below the means tested benefit level. So some checks and balances might be required. But with some creative thinking this issue shouldn’t be insurmountable and should be well worth the prize if it helps many people with their transition into retirement.”

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