Groups with low life expectancy should be able to ‘get state pension early’, say Age UK.
The poorest and most disadvantaged are set to be hit the hardest if state pension age continues to rise based on life expectancy alone, Age UK has warned.
Increases in average life expectancy have led to a rise in the state pension age in recent years – it’s currently on course to reach 67 by 2028 for both men and women.
But while most people will live to 67 and beyond, there are many – particularly men in more deprived areas and lower social classes – who are unlikely to make it to state pension age in good health.
In Glasgow City, for example, additional figures show that healthy life expectancy at birth is just 55.9 years for men and 58.5 years for women – nearly 10 years below the current state pension age.
The evidence shows that it is those in manual work or with caring responsibilities who are most likely to be hard hit by state pension age increases.
That’s why Age UK is urging the government to fully consider the impact of extending working lives on the most disadvantaged and vulnerable groups before making further changes.
“Pension age changes must not be based on life expectancy alone”
With healthy life expectancies varying greatly across the UK, and inequalities widening between deprived and affluent areas, Age UK is arguing that further increases to the state pension age must not be based on life expectancy alone.
Allowing people with more than 45 years of National Insurance (NI) contributions to receive their full state pension early could enable up to a quarter of a million people to enjoy a much-needed retirement after decades of physically demanding, manual work, according to a new paper by the Pensions Policy Institute (PPI), sponsored by Age UK.