Review of state pension age recognises adverse effect a rise would have on disadvantaged groups

Review of State Pension Age recognises adverse effect a rise would have on disadvantaged groups

Britain’s biggest pensioner organisation, the National Pensioners Convention (NPC) has welcomed John Cridland’s initial report into the State Pension Age (SPA) describing it as “breath of fresh air” in the debate surrounding life expectancy and longevity.

In particular the NPC believes the report shows:

  • Gross inequality in life expectancy both between and within geographical areas, with the differences at birth between the lowest socio-economic group and the highest being 5.9 years for men and 4.4 years for women (England and Wales only)
  • Only half of all years spent in retirement are in good health
  • The UK already has one of the highest SPAs in the developed world, which is set to be 68 by 2044-46. This is matched by just Ireland and the Czech Republic
  • How certain disadvantaged groups such as carers, those with a disability, the self-employed, ethnic minorities and women all benefit from the triple lock indexation on the state pension
  • That the majority of all generations – from the baby boomers, and generations X and Y – will continue to rely on the state pension for the bulk of their income in retirement

Dot Gibson, NPC general secretary said: “Up till now, there has been a suggestion that the state pension age can just keep going up and up, without any consequences, but the Cridland Review makes it clear that any increase will have a detrimental effect on carers, the disabled, self-employed workers, ethnic minorities and women, as well as those in certain professions. He also recognises how important the triple lock on the state pension is to those disadvantaged groups who will continue to rely on the state pension in the future.”

“Cridland also goes a long way to dispel the myth that there is a generational divide, by showing that for the vast majority of baby boomers, and those from generations X and Y, the bulk of their income in retirement will come from the state pension. The inequality that exists is between richer and poorer pensioners, not between young and old. The information in the report is like a breath of fresh air because it shows the importance of the triple lock on pensions and really prevents any suggestion that the state pension age can just go on increasing without that having a negative effect on some of the most vulnerable members of our society.”

ENDS

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