Petition to Cap the UK State Pension Age at 67

 

To: The Prime Minister, Members of Parliament, and the Department for Work and Pensions

 

Subject: Petition to Implement an Indefinite Cap on State Pension Age at 67 for Individuals with Full National Insurance (NI) Contributions, with Review Only When Life Expectancy Exceeds 102 Years.

 

We, the undersigned, are calling upon the UK Government to implement an indefinite cap on the state pension age at 67 for individuals who have made full NI (National Insurance) contributions, which currently stands at 35 years. For those who have not achieved full NI contributions, we propose capping the pension age at 70 to account for their reduced input into the system. 

This policy also proposes compulsory enrolment into a private pension scheme at the age of 18, for all those in employment.

This policy should only be reviewed if and when the average life expectancy exceeds 102 years, aligning with the principle that one-third of a person's life should be spent in retirement.

Increasing Life Expectancy and Quality of Life:

While life expectancy in the UK has been increasing, the quality of life in later years does not always align with this trend. Many citizens face significant health challenges as they age, making the prospect of working beyond 67 both physically and mentally demanding.

 

Outline:

Economic Stability and Fairness:

The trajectory of increasing the state pension age is an unfair burden on the working population, particularly those in physically demanding jobs. A fair and equitable system should recognise and incentivise contributions made by individuals throughout their working lives. 

Alternative Funding Through Taxation:

To address potential funding shortfalls, we propose exploring increased taxation, particularly targeting high-income earners and corporations, to ensure the sustainability of the state pension system without further increasing the pension age.

Compulsory Enrollment Into Private Pension Scheme at 18 years of age:

To further reduce the financial burden on the state, we propose that as of 2035, all adults in employment should have to be enrolled into a private pension scheme, to a minimum value of 5% of their gross earnings. This private pension, drawn in conjunction with their state pension, will allow a lower overall state pension sum to be required.

 

Proposal:

1. Cap the State Pension Age at 67 for Full NI Contributors: Individuals who have completed full NI contributions should be eligible to receive their state pension at the age of 67.
2. Cap the State Pension Age at 70 for Partial NI Contributors: For those who have not completed full NI contributions, the state pension age should be capped at 70 to balance the reduced contributions made over their working life. This will also serve as an incentive to remain in employment, or to make up missing contributions.
3. Review Pension Age Only When Life Expectancy Exceeds 102 Years: The state pension age should only be reviewed when the average life expectancy exceeds 102 years, in line with the principle that individuals should expect to spend approximately one-third of their life in retirement.
4. Cover Funding Shortfalls Through Taxation and Compulsory Pension Scheme Enrollment: Instead of increasing the pension age, we propose that any projected shortfalls in the state pension fund be addressed through progressive taxation measures and the introduction of compulsory private pension schemes. This includes: Reviewing and possibly increasing taxes on high-income earners; Implementing measures to ensure corporations contribute fairly to the tax system; Investigating other innovative tax solutions to secure the pension system's future; Compulsory Enrollment Into Private Pension Schemes for all those aged 18+ and in full-time employment, with a minimum of 5% gross earnings contributed.

 

Rationale:

Fairness and Equity: This approach ensures that those who have contributed consistently to the system are rewarded with a predictable and reasonable retirement age.

Health and Well-being: Recognising the physical and mental strain on older workers, especially in demanding occupations.

Economic Sustainability: Ensuring the pension system's sustainability through fair taxation rather than extending working lives.

Predictable Retirement: Establishing a clear and fair rule for reviewing the pension age only when life expectancy exceeds 102 years provides certainty and stability for future retirees, allowing the ability to plan for their future. 

 

Conclusion:

We urge the Government to take action to cap the state pension age at 67 for those with full NI contributions and at 70 for those with partial contributions. By addressing funding concerns through taxation, encouraging private pension schemes and setting a clear review threshold based on life expectancy, we can create a fairer, more predictable pension system that respects the contributions of our workforce. 

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Please add your name. Together, we can advocate for a fair and just pension system that reflects the values of our society.

Thank you for your attention and consideration.

 

Sincerely,

Andy.

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