Universal state pension age could be scrapped - review

The 'one size fits all' approach to state pension access could be replaced by a system more tailored to the demands of individual professions in future.

The idea is one that has been thrown open for discussion by John Cridland, the former director general of the CBI, who is leading a Government review.

While his interim report makes no recommendations, it suggests there is a case for a greater balance between the need to take account of the fact people are living longer - and fairness.

It points out that the UK is already on course to have the highest retirement age within the OECD group of advanced economies by 2060 but, at the same time, says the pensioners of the future do not deserve to get a raw deal compared to older generations.

In April this year a flat-rate, single-tier pension of £155.65 a week was introduced, leaving the majority of young people worse off than their parents.

But the report said that men born in the UK this year are expected to live an average of 90.6 years and women 93.5.

It warned of a rising cost of pensions if the state pension age doesn't rise - adding that estimates showed an extra year in work can boost economic output by 1% a year.

The review, which intends to marry the needs of the state pension versus warnings of a lack of private retirement savings, was also aiming to understand why people drop out of the labour market before retirement age.

It believed one factor could be people starting work at 16.

The study said: "It has been suggested to us that the type of profession might also be a significant factor for early retirement, whether it is accompanied by ill health or financial incentives or both.

"This is often labelled as "burnout" and it is most commonly observed in manual workers."

The full report is due to be released next year.

Mr Cridland added: "Whatever recommendations I decide to make in my final report, they will be underpinned by the importance of effective communications about the state pension age.

"People need to be able to plan effectively for their own retirement."