Pensions - Articles - DWP launches call for evidence on State Pension deferrals

Kelly Parsons, Head of DC Proposition at Broadstone, commented: “The DWP’s call for evidence comes at a time when pension adequacy is an increasingly pressing concern, with many people facing the prospect of entering retirement without sufficient savings to maintain their standard of living.

 

“With more people working longer into their careers, whether through choice or financial necessity, deferring the State Pension may become an increasingly attractive option. Longer life expectancies and concerns about whether pension savings will stretch throughout retirement could also encourage people to delay claiming in order to secure a higher guaranteed income throughout retirement.

 

“The Government has already made deferral less financially attractive, so this call for evidence may raise questions about whether further changes to the current arrangements could be considered. Any move to restrict or remove deferral incentives would need to be carefully weighed against the importance of giving people flexibility over how they fund their retirement.

 

“Ultimately, deferral is far from a one-size-fits-all solution and is another complex decision we are asking pension savers to make as they approach retirement. While it can boost later-life income, delaying access to the State Pension may not be financially viable for everyone. As the Government looks to tackle pension adequacy, helping savers understand their options and plan effectively for increasingly complex retirement journeys must be a priority.”