My report for the TUC modelling future increases in life expectancy inequalities, and the likely impact on state pension receipt.
The Pensions Bill currently being considered by parliament will accelerate the timetable for increasing state pension age to 67. It will now reach 67 for both men and women by 2028, compared to 2036 under current legislation. Increasing state pension age is unjust because of the persistence of inequalities in life expectancy between different groups.
The ONS publishes details of current life expectancy gaps, but its projections are based only on average life expectancy; this report therefore models what life expectancy inequalities will look like in 2028 should current trends persist.
Life expectancy inequalities convert into significant differences in the amount of state pension income different groups can expect to receive over their retirement. Figure 2 summarises what our analysis shows these differences will be (if current trends persist) for 65 ye ar-olds in 2028 once the Pensions Bill passes. The second section of the report shows that in this scenario women can expect to receive 12.3 per cent more in state pension income than men from 2028, compared to 11.7 per cent more than men when the new ‘single tier’ state pension system is introduced in 2016.
Click here to access the full report.
Image: Chris Jones