This blog was contributed by Hannah Pearce, Age UK’s joint Head of Public Affairs.
The big headline in today’s autumn statement was the Chancellor’s announcement to increase state pension age. George Osborne said that state pension age would be set following a general principle by which people could expect to spend a third of their adult life in retirement. He declared that state pension age needs to keep up with life expectancy. On current assumptions, this would mean an increase to 68 in the mid 2030’s and 69 by the mid 2040’s. This follows a number of increases to State Pension Age in the last three Pensions Acts, the most recent of which speeded up equalisation so that women’s State Pension Age will increase to 65 between April 2016 and November 2018 and then to 66 for both men and women between December 2018 and October 2020. The current bill going through parliament proposes an increase to 67 between 2026 and 2028.
We have two broad concerns with this pronouncement. Firstly life expectancy figures on their own do not tell the whole story. Whilst life expectancy at birth (in England) for men is 83 the life expectancy gap – the gap between the highest and lowest life expectancy estimates by local authority is almost 9 years. The picture looks even worse when you examine healthy life expectancy which is only 64. And the male healthy life expectancy gap by local authority is over 15 years with Richmond at one of the scale where it is just over 70 compared to Manchester where it is just 55. Continue reading “Ever receding retirement?”