A retirement organisation has welcomed the latest announcements by the government on pensions, although it has called for more flexibility in the area.

Pensions secretary Iain Duncan Smith recently announced that he is looking into phasing out the current retirement age so that individuals can save up the money they need once they do stop working.

Just Retirement has welcomed the development, although it has also suggested that more action needs to be taken to enable people to be more flexible with their pensions.

David Cooper, marketing and distribution director at Just Retirement, said that the pensions system should reflect the needs of the population.

He added: The ability to reflect a change in health with an increased income will come at a time when those concerned are likely to be facing new and significant costs.

Any review of pensions should take this into account in order to ensure individuals are able to meet their needs in retirement.

An independent policy advisor recently suggested that the basic state pension needs to be lifted further as it is still among the lowest in the developed world.