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Saturday, February 3, 2024

State pension rise to 66 has pushed many into poverty 

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A damning report by the Institute for Fiscal Research out right this moment reveals that the rise within the state pension age from 65 to 66 has condemned many extra retirees to poverty.

The report discovered almost 100,000 extra folks had been pushed into poverty by the rise however solely 60,000 managed to work longer.

Former Pensions Minister Baroness Ros Altmann calls the revelations “stunning” and has urged a rethink of state pension age coverage.

The IFS report investigated how rising the state pension age from 65 to 66 between December 2018 and October 2020 affected family incomes.

The IFS stated the rise in state pension age has had a significant influence on retirement revenue.

Key findings from the IFS report are:

• 65-year-olds misplaced – on common – state pension revenue price round £142 per week in 2020–21

• Accounting for all types of revenue, together with state pensions, earnings, different advantages, non-public pensions and funding incomes, the rise within the state pension age pushed down the online revenue of 65-year-olds by a median of £108 per week.

• The reductions in family incomes have had a very essential impact on lower-income households: they’ve brought on important will increase in revenue poverty charges amongst 65-year-olds.

Baroness Altmann stated Authorities ought to rethink State Pension coverage to replicate the close to 20-year distinction in wholesome life expectancy between better-off and least-advantaged teams. She needs a State Pension Age evaluate to contemplate extra flexibility in beginning ages to account for ill-health, incapacity, lengthy contribution data or caring.

She stated big variation in well being life expectancy between higher off and worst off areas meant the state pension was now not truthful to everybody.

She stated: “These stunning findings present injury attributable to elevated State Pension Age. The most recent analysis launched right this moment by the Institute for Fiscal Research, reveals that the rise in State Pension Age to 66 has brought on poverty charges for 65 year-olds to greater than double.

“These findings are really stunning, with the delay of their state pension beginning age leaving one in 4 65-year-olds in poverty.  Even these with severely shortened life expectancy and as much as 50 years contributions to Nationwide Insurance coverage, can not obtain a penny of State Pension early.”


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