CIPD calls for withdrawal of retirement age to boost pensions
More progress could be made on pensions by removing the retirement age and withdrawing means-testing, the Chartered Institute of Personnel and Development (CIPD) has claimed.
Although the organisation supports the government's proposal to set up a National Pensions Savings Scheme, it said the government needs to be more "holistic" in its approach to pensions.
The organisation said that withdrawing the default retirement age of 65, withdrawing means testing and offering financial incentives in the form of monthly cash prize draws would provide a boost to pensions.
The default retirement age acts as a barrier to those wishing to remain in work, CIPD reward and recognition adviser Charles Cotton claimed.
"Against the background of an ageing population, this bureaucratic and complex procedure is at odds with the government's anti-ageism policies," he said.
He also called on the government to consider the communication aspect of the situation, saying that people will only be able to make informed decisions about retirement and savings when they are told the value of their state pension.