There are around 350,000 Scotswomen affected by the transition to equality in men and women’s State Pension Age. The initial Westminster Pension Age Act was in 1995 and it set out a gradual pathway to equalise the pension age for men and women. But in 2011 a second Pension Age Act increased the rate of change for women and increased the overall pension age to above 66. This has created a group of women who are partially badly affected. Women born in the mid-50s are losing six years of their State Pension.
Life expectancy in Scotland is currently lower than in the rest of the UK. On average between 2010-12, a 65 year-old male in the UK could be expected to live to around 83 years 5 months compared with 82 years 11 months in Scotland, and a 65 year-old female in the UK could expect to live to 85 years 11 months whereas in Scotland it was 84 years 6 months.
According to the Scottish government, this means that “a 65 year-old entitled to a total pension of £160 per week could expect the lifetime value of their state pension to be around £10,000 (men) or £11,000 (women) less in Scotland than in the UK as a whole”.
British workers can expect among the worst pensions in the developed world, according to a report from investment bank UBS, which compared the retirement outlook for a 50-year-old woman in major cities across the globe.
How much a state plus “mandatory” pension will be worth at retirement as a proportion of current income, based on a 50-year-old female in each city
Singapore 73% Sydney 72% Paris 69% Milan 67% New York 55% Tokyo 55% Munich 50% Zurich 48% Toronto 42% London 41% Hong Kong 41% Taipei 32%
THE state pension age may rise above life expectancy for men in more than 160 Scottish communities unless the system changes, MPs warn. n a new report, the Commons Work and Pensions Committee says claimants would have to be 70.5 years old by 2060 if the current rate of annual increases is sustained. This would exceed the average male life expectancy in more than 160 parts of Scotland and almost 30 in England.
Committee chairman Frank Field said the “triple lock“ which guarantees the state pension rises by average earnings, the consumer price index, or 2.5 per cent, whichever is the highest must be scrapped to avoid people working to death.
He said: With the triple lock in place, the only way state pension expenditure can be made sustainable is to keep raising the state pension age. This has the effect of excluding ever more people from the state pension altogether. He said those affected would be disproportionately from more deprived areas and manual occupations.