Experts have renewed calls for a system allowing early access to the state pension, as the retirement age is set to increase gradually from 66 to 67 by April 2028. A senior DWP minister recently told MPs that early access is a key question going forward. 5 percent.
Wealth firm Aegon has long advocated for early access to the state pension, with Kate Smith, head of Pensions at Aegon, arguing that the government is willing to explore how the system can better reflect that not everyone can work up to an ever-rising state pension age. According to Smith, lower income groups are more adversely impacted by the rising state pension age, and on average people are living longer but not necessarily healthier. She said a single fixed minimum state pension age increasingly fails to recognize differences in people's health, job demands, and caring responsibilities, and greater flexibility would give individuals more choice over when they access the state pension, rather than forcing a one-size-fits-all approach.
Smith added that any reform must continue to be based on individual need and capability, while offering practical options and support for people who can't stay in work longer, and exploring a more flexible framework is a sensible and pragmatic step worth serious consideration. DWP minister Torsten Bell was recently asked by the Work and Pensions Committee about granting early access to certain groups. It remains unclear what specific groups might be eligible or how such a system would be funded or structured, and the government's timeline or next steps for considering early access have not been detailed.