1. Equity: A variable state pension age could be seen as fairer in some respects. It takes into account individual differences in life expectancy and health, which can affect people's ability to continue working. Those who live longer or have better health may be able to work for a longer period and therefore draw their state pension later, resulting in a more balanced distribution of benefits.
2. Flexibility: A variable state pension age could provide greater flexibility for individuals to plan their retirement. They could choose to retire earlier if they wish, potentially allowing them to enjoy more time for leisure activities or to care for dependents. Alternatively, they could choose to work longer if they want to continue earning income or accrue additional pension benefits.
3. Gender inequality: Critics argue that a variable state pension age may perpetuate gender inequality. Women generally live longer than men but have historically had lower average earnings and fewer opportunities for career advancement. This could result in women having to work for a longer period to accumulate enough pension savings, potentially exacerbating existing gender pension gaps.
4. Impact on low earners: A variable state pension age may also disproportionately affect low-income earners. Many people in this category may have physically demanding jobs or work in industries with limited opportunities for career progression. For them, continuing to work beyond a certain age may be challenging or even detrimental to their health.
5. Cost to the state: A variable state pension age could have implications for the state's pension budget. If a significant number of people choose to retire later, the government would need to pay out benefits for a longer period, potentially increasing the financial burden on taxpayers.
Ultimately, the fairness of a variable state pension age is a matter of opinion. It requires careful consideration of a range of factors, including individual circumstances, gender equality, the impact on low earners, and the financial sustainability of the state pension system.
