The government should scrap the state pension 'triple lock' and replace it with an earnings link, according to John Cridland's long-anticipated review.
The report, published 23 March, also argued the state pension age (SPA) should rise to 68 by 2039, and then could increase one year every decade in line with longevity expectations. This means the SPA could reach 70 by 2057, hitting anyone born after 1987.
However, he sought to dodge problems caused by equalising pensions between the sexes by stating all increases in the SPA should require notifications to the public at least 10 years in advance.
Cridland said the changes would enable a smoother transition to retirement.
"My review considers the consequences of an ageing society," he said. "It addresses how we can afford to live a longer pensionable life, how we can work longer where this is necessary and possible, and where it is not, how to give assistance to those who need it.
"The aim is to smooth the transition for tomorrow's pensioners and to try and make the future both fair and sustainable."
Cridland's report came alongside a separate Government Actuary Department analysis, which predicted rises in the state pension age based on everyone receiving the state pension for either 32% or 33.3% of their adult life.
The report said reducing the proportion of life in retirement would see 6.7% of GDP being spent on the state pension by the 2066/2067 financial year, 0.3% less than currently estimated.
Former pensions minister Sir Steve Webb - now director of policy at Royal London - said the government was at risk of "misleading parliament" if the SPA increase timetable was accelerated.
"If the government goes ahead with the more radical timetable for pension age increases, they would be guilty of misleading parliament," he said. "This is not what parliament voted for and is clearly driven by the Treasury.
"It is one thing asking people to work longer to make pensions affordable, but it is another to hike up pension ages because the Treasury sees it as an easy way to raise money."
AJ Bell senior analyst Tom Selby said the triple lock was unlikely to be scrapped in this parliament however, particularly following last week's U-turn on National Insurance Contribution (NIC) increases for the self-employed.
"The triple lock looks like the lowest hanging fruit here, although a government scolded by the self-employed National Insurance (NI) debacle in the Budget will not want to break another manifesto pledge by scrapping it before 2020," he said. "However, the triple lock's shelf life now appears limited."
Cridland's report also rejected calls for flexible access to the state pension, including where a person is suffering from ill health, or where life expectancy is lower. In the report, he stated having one SPA was "simple and clear and provides a trigger for pension planning".
Instead, he proposed measures such as a "mid-life MOT" to enable to people to plan for retirement, as well as further means-tested support one year before hitting the SPA.
Former pensions minister Ros Altmann expressed disappointment, comparing the NI regime with wider life insurance policies.
"People with shorter than average life expectancy generally still pay around a quarter of their salary in NI," she said. "They may have worked for 50 years or more but may die before being eligible to any state pension - or may receive very little.
"This seems inequitable and their lower life expectancy is not recognise by our NI rules. Normal insurance would usually charge lower premiums to such people but that does not happen. Therefore, allowing early access could compensate for this even if for a reduced pension."
Aberdeen Asset Management head of retirement savings Gregg McClymont added the lack of flexible access was particularly hard on those who move into employment immediately after school.
"Hiking the SPA further raises huge issues of fairness," he said. "For those who spend their working lives doing hard manual work, 50 years on the job will often be impossible.
"It would be much better to set the entitlement to a state pension on the number of years a person has paid their NICs, rather than on age. This would mean that those going to work straight from school will reach their retirement age earlier."
The report also suggested allowing savers the ability to defer their state pension and then take higher benefits later.
Cridland recommended no changes to the SPA should be enacted before 2028.
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