Mercer welcomes the recommendations of the recent Independent review of the State Pension age: Smoothing the transition by John Cridland CBE, and calls for formal commitment from all political parties to support those having to work longer. The consultancy said that failure to address the ripple effects of increasing the state pension age will have a detrimental impact on individuals’ lives, businesses and the national health and social care systems.
Faced with increases in longevity and the rising cost of the state pension, the Cridland review was commissioned by the Government to consider whether the state pension age needs to change. The review recommends increasing the state pension age from 67 to 68 between 2037 and 2039, and highlights the need for Government to support people to plan for longer working lifetimes, and longer expected retirements. The review also points out that a large proportion of caring is undertaken by people approaching state pension age, and they are likely to be significantly affected by changes in state pension age.
“Looking beyond Brexit, the Cridland review goes to the heart of many of the core issues raised in the current election campaign, including supporting the population with work and care,” said Tony Wood, UK Leader of Mercer’s Health & Benefits business. “However there appears to be a distinct lack of commitment to the recommendations. People need to plan well in advance, to be able to make the most of living and working longer, and it is imperative that all the recommendations of this review are addressed by those forming our new Government and not kicked into the long grass.”
Recent research* shows that only 43% of people feel comfortable discussing retirement with their employer and only 24% think that their employer offers the necessary support. The review underlines the importance of this support in helping individuals secure a comfortable retirement themselves and thereby minimise their dependence on the state. A national Mid-Life MOT programme**, as proposed in the Cridland review, should be seen as an integral part of the support provided to those over 50. Mr Wood said: “The longer the delay in implementing the recommendations the more people will be denied the opportunity of a successful and independent retirement.”
Currently 1 in 9 employees is a working carer***, while 1 in 7 working carers leave the workforce due to care responsibilities. Mr Wood said: “If organisations introduced working carer support in the form of carer policies and carers leave, and encouraged the introduction of staff benefit packages that support employees in managing family care, they would help enable many older employees at pension age who are juggling work and care commitments, to continue working. The Government should encourage this, as it is not only good for the employee, but it also helps the employer to retain an experienced member of staff (at a time of a national skills shortage), while also ensuring the tax base remains strong and easing the overall care burden placed on the NHS and social care system.”
Notes to Editors
*Jelf Group, LaterLife survey of 1000 employed people over 55, March 2017
**Independent Review of the State Pension Age, Section 5.3 “Mid-Life MOT”
*** Carers UK, 2015
About Mercer
Mercer is a global consulting leader in talent, health, retirement and investments. Mercer helps clients around the world advance the health, wealth and careers of their most vital asset – their people. Mercer’s more than 20,000 employees are based in 43 countries and the firm operates in over 140 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global professional services firm offering clients advice and solutions in the areas of risk, strategy and people. With annual revenue of $13 billion and 60,000 colleagues worldwide, Marsh & McLennan Companies is also the parent company of Marsh, a leader in insurance broking and risk management; Guy Carpenter, a leader in providing risk and reinsurance intermediary services; and Oliver Wyman, a leader in management consulting. For more information, visit www.mercer.com. Follow Mercer on Twitter @Mercer. In the UK, Mercer Limited is authorised and regulated by the Financial Conduct Authority.
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