Journal Article

Can't wait to get my pension: the effect of raising the female early retirement age on income, poverty and deprivation

Date: 09 March 2018
Authors:
Publisher: Cambridge University Press
Published in: Journal of Pension Economics and Finance , pp. 1-23
JEL classification: H55, D31, I38
DOI: 10.1017/S1474747218000057

We estimate the impact of increasing the female early retirement age (ERA) on household living standards. Examining the increase in the female ERA from 60 to 63 in the UK, we find increased earnings only partially offset lost public pension income, leaving affected women's household incomes £32 per week lower on average. The proportional effect was substantially larger for women in lower income households. This increased the income poverty rate among affected women by 6.4 percentage points. We find no evidence of an increased inability to afford important material items, potentially suggesting that material deprivation has been avoided through smoothing of consumption.