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Waspi slams ‘devastating’ state pension age hike as IFS says reforms saved £5.1bn

Reforms have left women £32 a week poorer, think tank finds

Pension savings-2015The Women Against State Pension Inequality campaign has hit out at Government increases to the state pension age again as a new report suggests that reforms have delivered £5.1bn back to the Treasury.

A study by the Institute for Fiscal Studies finds that, on average, women’s household incomes have been reduced by £32 per week as a result of the increase in state pension age from age 60 in 2010 to age 63 in 2016.

As this has a bigger impact on lower-income households, the IFS estimates a knock-on effect of a 6.4 percentage point increase in the absolute income poverty rate of women between 60 and 62.

However, the IFS says that this increase in income poverty subsided once women hit state pension age, suggesting that this may be the result of women spending less to avoid deprivation.

In a statement this morning, Waspi director Jane Cowley said: “Once again, this shows that Government has implemented state pension age reforms without adequately considering the full impact of these changes on the women affected.

“Whether it is the 3.5 million Waspi women who were not given sufficient warning of rises to their state pension age, or the sharp rise in income poverty among 60 to 62-year-old women, the Government needs to sit up and start realising that its changes have devastating consequences on the women affected.”

Waspi, which is campaigning for transitional arrangements for women affected by state pension age increases, is currently encouraging its members to send in complaints to the Department for Work and Pensions about the reforms.

The Government recently brought forward future increases by seven years as it bowed to the recommendations of a flagship report into the state pension age and inter-generational fairness.

In a statement a DWP spokesperson said: “The decision to equalise and increase the state pension age is both fair and sustainable for future generations and in line with continuing rises in life expectancy.
“Women retiring today can still expect to receive the state pension for over 24.5 years on average – which is more than any generation before them and several years longer than men. By 2030, more than three million women stand to gain an average of £550 extra per year as a result of the new state pension.”

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Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. Robert Milligan 2nd August 2017 at 11:39 am

    Fairness!! Who gave women the state pension at 60 anyway, We have equal opportunists at the BBC!, Most women live longer than men, so the cost of providing women with State pensions at sixty, most of whom were “credited” for years, without payment, No wonder its become untenable. “Conscription” !!Fairness all round I say

  2. Excellent news, that will mean £5.1 billion less Government debt for my children to pay off.

  3. I must admit I honestly find WASPI’s arguments utterly baseless and somewhat misleading.

    So these “poor women” weren’t given sufficient time to plan?

    I wonder how long anyone needs to “plan” for having to work a few years extra?

    Because at the end of the day this is what it boils down to. I find it impossible to have sympathy for someone having to work an extra 3 years to age 63, especially when they could easily work part time 3 days a week, in a low paid, low stress job, that’s not hard physical work and more than match any income that they would have received from the state pension.

    How is this stressful, difficult or require major planning?

    No, in simple terms, WASPI’s entire argument, is based around the premise that they want what they were promised…

    It’s a me, me, me attitude that takes absolutely no account of the countries, or their children and grandchildrens ability to pay the bill, which they had NO say in creating.

    It’s no different to the argument that you cannot keep working in a “hard physical” job till your in your late 60’s. Are you honestly trying to tell me that the £8kpa state pension requires full time hard graft? No, a simple part time, low stress job, will easily pay £8kpa, so stop whining for gods sake.

  4. Andy Robertson-Fox 4th August 2017 at 9:15 am

    If the Treasury has £5.1bn ‘floating around’ then no doubt this was the intention in adjusting the state retirement age. If it doesn’t know how to spend it may I suggest that some £580 million is used to right the discriminatory wrong of the frozen pension scandal? There claim has far greater validity than the Waspi group.

  5. Meanwhile, John Cowley, the Chief Executive of MASPI, has today commented that there is a strong argument women should receive the same amount of state pension as men, on average, meaning either women start receiving it at a later age, receive less per week, or some combination of those two, in order to ensure broadly equal treatment of men and women.

    Fairness – all things to all men (and women)

  6. Surely they are arguing for Inequality rather than against it? After all, the government is moving the state pension age for them to equal the men’s state pension age!

  7. “The decision to equalise and increase the state pension age is both fair and sustainable for future generations and in line with continuing rises in life expectancy.
    “Women retiring today can still expect to receive the state pension for over 24.5 years on average – which is more than any generation before them and several years longer than men”.

    That says it all

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