Print Share

Mud-slinging over SPA needs to cease as Labour launches national pension tour


If you’re covering the launch of Labour’s national state pension tour please see the below comment from Jon Greer, head of retirement policy at Old Mutual Wealth:   

Jon Greer“Labour’s announcement says all the right things to the generations who were dismayed by the increase to the state pension age. However, their argument has holes and they have yet to outline costed workable proposals. Until they do their words should be taken with a hefty pinch of salt.

“The state pension age changes recently announced will affect around six million people, those currently aged 39-47, and will delay their retirement by one year. Clearly that specific change does not affect 37 million people.*

“Labour have suggested they might consider a flexible state pension age, which is a worthwhile proposal and deserves serious consideration. A flexible state pension age could allow people with lower life expectancy to take a smaller state pension at a younger age, giving some flexibility to people that cannot work until age 68. However, government will need to make it administratively viable. The recent SPA review had considered such a proposal, but government decided it was too complex.

“If Labour commit to keeping the state pension age at 66 and also hold the triple lock in place, which they promised in their manifesto, then pension costs will continue to rise at an unsustainable level.

“According to John Cridland’s review of the SPA, spending projections show that between now and 2036/7 annual State Pension spending is set to rise by an extra 1% of GDP, from 5.2% in 2016/7 to 6.2% in 2036/7. This is equivalent to an increase in taxation of £725 per household per year. While keeping the state pension age where it is would be great news to millions, the onus is still on Labour to prove how it would make such a decision possible.

“There is a lot of mud-slinging over state pension age, and yet every party recognises the a long-term sustainable policy solution is required. It is the perfect example of a policy decision that needs cross-party consensus. State pension policy affects everyone, both retired age people and those still in work and we deserve better than perpetual bickering between politicians on such a key issue.”


*Prior to that state pension age changes had remained fixed from the mid 1900’s until 1995, when government legislated to equalise retirement age at 65 for men and women. In 2007 the Labour government legislated for increasing the state pension age to 66 by the mid 2024-26. Since then the coalition and conservative governments have both legislated for further state pension age increases.


For more information contact

Kathleen GallagherOld Mutual Wealth023 8072 629307990

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.