Despite concerns over the growing cost of the state pension, the government has faced further pressure to protect the pensions triple lock in the upcoming Budget, as well as calls to narrow the "yawning" gender pensions gap through auto-enrolment reform.

The comments were made by the Later Life Ambitions, a campaign group representing over 250,000 older people, including pensioners from the Civil Service Pensioners’ Alliance (CSPA), the National Association of Retired Police Officers (NARPO) and the National Federation of Occupational Pensioners (NFOP).

The LLA shared its Budget for Later Life in parliament earlier this week, outlining calls for the government to protect the state pension, reduce the tax on pensions, and tackle the gender pensions gap. 

In the report, the group argued that it is "critical" to maintain the triple lock’s link to inflation and establish a clear, stable relationship between the state pension and average earnings to prevent a resurgence of pensioner poverty.

It also pointed out that whilst life expectancy has increased, healthy life expectancy has not kept pace, warning that many older adults spend significant years in poor health.

Given this, it echoed recent industry calls that state pension age (SPA) criteria should consider healthy lifespan, not just morbidity data, to address the challenge of people being too old to work but too young to retire with adequate support.

However, whilst some industry experts have acknowledged that an alternative to the triple lock could be needed, the LLA recommended the protection of the triple lock beyond 2029, ensuring pensions rise in line with living costs and wages.

It also encouraged the government to defer further SPA rises until inequalities in life expectancy, narrowed and a new settlement is agreed.

The group also encouraged the government to cut the tax burden on pensioners, calling for the indexation of thresholds with inflation to avoid unfair real-terms tax rises.

It also stressed the need to increase the basic income tax threshold based on the Bank of England’s inflation calculator, and to continue to protect the 25 per cent tax-free lump sums to give retirees security when accessing their pension pots.

The report also raised broader concerns around the "yawning" gender pensions gap, calling for immediate relief for retired women.

In particular, the LLA suggested expanding National Insurance credits for time spent out of the workforce and caring.

It also called for a targeted Pension Credit supplement for low-income women, mandatory gender pension gap reporting (mirroring gender pay gap reporting) and automatic enrolment from the first pound of earnings, benefiting low-paid part-time workers (75 per cent of whom are women).

In addition to this, the group urged the government to do more to support older people in the workplace, warning that there is growing evidence of widespread age discrimination in the workforce, particularly affecting individuals in their 50s and 60s who wish to continue working. 

CSPA general secretary, Sally Tsoukaris, explained that whilst there is "enormous pressure" facing the Chancellor, penalising pensioners in retirement is never the answer to fixing the public finances.

“Our Budget is a progressive and positive proposal for a happy, healthy and fulfilling later life which celebrates older people’s contribution to society, recognises the dilemmas and addresses the policy challenges we will all face as we age," she continued.

“We hope the Chancellor will give older people a good deal this Autumn and honour their promises to deliver change for a fairer Britain.”

Adding to this, NARPO CEO, Alan Lees, warned that "this year’s Budget is set to be a significant moment in the course of this parliament and the direction of this government".

"As such it is also an opportunity to provide a clear signal to the nation’s pensioners that their contribution to the nation, both through their working life and into later life, are valued," he added.

NFOP CEO, Eamonn Donaghy, agreed, arguing that “Britain’s pensioners need reassurance and clarity not endless Budget speculation that causes stress about how financially tough this winter and even the winters ahead may be".

“The government must not balance the books on the backs of the nation’s pensioners," he stated. 

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