FT Adviser (16/04/2019) – Increases to the state pension age are unfair to certain groups of individuals, such as less educated women and manual workers, the International Longevity Centre has warned.
A report from ILC-UK found the state pension age reforms had the potential to worsen social inequalities, especially for women with poor education.
From 2019, the state pension age will increase for men and women to reach 66 by October 2022.
Research from the Extend project into inequalities in relation to extending working lives showed those best equipped to take advantage of this increase tend to be better educated, skilled, and on a higher wage.
Conversely, for disadvantaged workers, extending working lives could lead to involuntary early labour market exit, due to greater health and care needs and caring responsibilities.
Ricky Chan, director at IFS Wealth & Pensions said: “Clearly this is a good example of where government policy has failed those most vulnerable.
“Those less educated are likely to be engaged in more physically demanding jobs, and by forcing them to work longer (35 qualifying years instead of 30), this is likely to have a detrimental impact of their longer term health – they may not have much of a retirement to enjoy.
“This group also would more likely depend on the state pension as a source of retirement income than those with higher education who are likely to have other retirement provisions.”
Full article link: https://www.ftadviser.com/pensions/2019/04/16/state-pension-age-increase-unfair-to-less-educated/
