Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • April 2019
04

State pension age rise to exacerbate social inequality

Open-access content 15th April 2019

The UK’s rising state pension age has “significant potential” to exacerbate social inequalities, with women and low-income workers likely to be among the hardest hit.

2


That is according to a new report from the International Longevity Centre UK (ICL), which highlights how the most affluent in society are best prepared for pension age hikes.

However, it is thought that forcing disadvantaged workers to retire later could lead to involuntary early labour market exits due to their greater health and care needs.

And because women currently undertake most domestic work and unpaid care, there is a chance they could struggle to reconcile their caring responsibilities will longer working lives.

"Increasing pension age in line with life expectancy is a very blunt instrument that exacerbates inequality and particularly harms older women," Sheffield University's professor Alan Walker, said.

The researchers said women with lower education levels could lose up to 25% of their monthly pension entitlements thanks to the rising state pension age and a move to contribution-based schemes.

But after comparing pension reforms across five countries, they found that other nations have changed the state pension age without exacerbating social inequalities to the same extent as the UK.

Systems with a strong, reliable basic pension that does not rely on contributions showed a less pronounced rise in social inequalities when increasing the state pension age.

The ILC is now asking the government to draw on examples from other countries to reduce the risk of social inequalities when pension ages are adjusted in line with longevity increases. 

It also called for greater support of workers' health and wellbeing through job and retirement flexibility, as well as support in the management of illnesses and caring responsibilities.  

"There is a need for wider approaches to encourage work in later life beyond reforms to pensions, including measures to address health and wellbeing at work, to tackle age discrimination in the workplace, and to support those juggling work and caring," ILC senior research fellow, Dr Brian Beach, said.

Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession


This article appeared in our April 2019 issue of The Actuary.
Click here to view this issue
Filed in:
04
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Capital contractor

England, London
£700 - £1000 per day
Reference
118813

Senior Financial Risk Actuary

London, England
£55000 - £100000 per annum
Reference
118812

Pricing Technology Lead

England, London
£60000 - £70000 per annum
Reference
118811
See all jobs »
 
 

Most-Popular

 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200