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State pension age 'could rise above lifespan' in poorer areas, say MPs
State pension age 'could rise above lifespan' in poorer areas, say MPs
This is a duplicate of the Blog Entry made on: 28th February 2017 22:03
This is a duplicate of the Blog Entry made on: 28th February 2017 22:03
The state pension age may have to rise to levels above the average lifespan of men in the UK's poorer areas, MPs say.
The Work and Pensions Committee said the age would need to rise above 70 to make the current policy of increasing the pension amount sustainable. State pensions rise each year by the inflation rate or whichever is highest of average earnings or 2.5% - as part of the so-called pensions triple-lock.The government said it was committed to the policy until 2020 at least. As a result of triple-lock policy, the state pension has risen by £1,100 since 2010. In November the committee said the policy should be scrapped.
'Disproportionate effect'
The committee commissioned the Institute for Fiscal Studies to estimate the extra state pension age increases that would be needed to maintain expenditure at about 6% of GDP (Gross Domestic Product). It found that the state pension age would need to be 70.5 years by 2060. But the committee's research found that in deprived areas of England and Scotland, male life expectancy was below that level. Currently, the state pension age is set to be 67 for both men and women by 2028.....Source HERE
The Work and Pensions Committee said the age would need to rise above 70 to make the current policy of increasing the pension amount sustainable. State pensions rise each year by the inflation rate or whichever is highest of average earnings or 2.5% - as part of the so-called pensions triple-lock.The government said it was committed to the policy until 2020 at least. As a result of triple-lock policy, the state pension has risen by £1,100 since 2010. In November the committee said the policy should be scrapped.
'Disproportionate effect'
The committee commissioned the Institute for Fiscal Studies to estimate the extra state pension age increases that would be needed to maintain expenditure at about 6% of GDP (Gross Domestic Product). It found that the state pension age would need to be 70.5 years by 2060. But the committee's research found that in deprived areas of England and Scotland, male life expectancy was below that level. Currently, the state pension age is set to be 67 for both men and women by 2028.....Source HERE