Royal London has warned against a “drastic” proposal to raise the State Pension age to 75.

The Centre for Social Justice, a think tank chaired by former Work and Pensions Secretary and ex-Tory leader Iain Duncan Smith, recently published a report which recommended the change.

The rationale for upping the pension age to 75 by 2035 was cited as “removing barriers” for older employees and “health and wellbeing concerns”.

The report’s conclusion read: “ Removing barriers for older people to remain in work has the potential to contribute greatly to the health of individuals and the affordability of public services.

“Therefore, this paper argues for significant improvements in the support for older workers.

“This includes improved healthcare support, increased access to flexible working, better opportunities for training, an employer-led Mid-Life MOT and the implementation of an ‘Age Confident’ scheme.

“As we prepare for the future, we must prioritise increasing the opportunity to work for this demographic to reduce involuntary worklessness.

“For the vulnerable and marginalised, a job offers the first step away from state dependence, social marginalisation and personal destitution.”

In addition, provided that this support is in place, we propose an increase in the State Pension Age to 75 by 2035.

“While this might seem contrary to a long-standing compassionate attitude to an older generation that have paid their way in the world and deserve to be looked after, we do not believe it should be.

“Working longer has the potential to improve health and wellbeing, increase retirement savings and ensure the full functioning of public services for all. 

But Royal London’s Helen Morrissey cautioned against the approach.

The pension specialist said: “While such proposals will undoubtedly save money, raising state pension age so quickly will cause huge issues for many retirees who will not have been given adequate time to prepare.

“We need to give careful thought to what kind of jobs people in their 70s are able to do and while some people will be able to work on for longer others simply won’t be able to.

“These people will face severe financial hardship if they have not saved enough into a pension to cover the years between leaving work and claiming state pension.”

She added: “The Government needs to think carefully before taking such drastic action.”

The Financial Services Compensation Scheme has opened the door to claims against a SIPP firm which was dissolved more than 10 years ago.

The FSCS says it is now accepting claims again North Star SIPP LLP which was dissolved on 9 June 2009. 

In January 2018, the FSCS declared three SIPP operators, Brooklands Trustees Ltd, Stadia Trustees Ltd and Montpelier Pension Administration Services Ltd in default. Since then FSCS has received a number of claims against these and other SIPP operators, it says.

The compensation body says it is aware that SIPP operator due diligence has been an industry ‘hot topic’ in recent years and FSCS is aware that there are a number of pending civil claims in the High Court against various SIPP operators in respect of alleged due diligence failings.

The FSCS anticipates that claims submitted against North Star will relate to the SIPP operator's due diligence obligations in allowing customers to make specific investments under their pensions.

In a statement the FSCS said: “We're aware that North Star customers may have been advised by independent financial advisers to transfer existing pensions into a North Star SIPP. Following the pension transfer, customers had their pension funds placed in high risk, non-standard investments, many of which have become illiquid.”

The FSCS says it has has already assessed and paid a number of claims made against IFAs already declared in default by the FSCS in relation to advice customers received to transfer their pension into a North Star SIPP.

The joint administrators of GPC SIPP have concluded the sale of the business to Hartley Pensions following a period of marketing.

The deal, which was completed on Monday, included the effective transfer of the SIPPs and SSASs held via the trustee company, Guardian Pension Trustees Limited.

Adam Stephens and Henry Shinners of Smith & Williamson LLP were appointed as joint administrators of GPC on June 11.

Hartley is an established SSAS provider with over 35 years’ experience in the financial services industry, opening its first SIPP in 2001.

It is part of the Wilton Group and manages more than £1 billion of clients’ assets.

Adam Stephens, lead administrator, said: “We are pleased to confirm the sale of the business to Hartley, which will provide continuity of service to GPC’s clients.

“We recognise that the insolvency of GPC may have been unsettling to clients”.

Weightmans LLP acted as legal advisers to the joint administrators on the sale.

James Moore, restructuring and insolvency partner at Weightmans LLP, led the team along with Natasha Atkinson (R&I Partner) and pensions partner Mark Poulston.

The joint administrators confirmed that all staff will transfer across to Hartley, which, they said, should assist in ensuring that clients will experience minimum disruption in the transfer process.

The joint administrators and Hartley “do not anticipate that there will be any interruption to the services previously provided by GPC”.

GPC specialised in the provision of technical and administration services to Guardian Pension Trustees Limited which acted as the corporate trustee of SIPPs and SASSs.

It administered around 3,200 SIPPs and 50 SSASs, holding over 8,000 property assets, and a total investment value of around £130m.

The joint administrators said clients will be contacted “in the coming days” with information about their pensions.