cover image: lnstitute for Fiscal Studies - IFS Report R211 - How did increasing

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lnstitute for Fiscal Studies - IFS Report R211 - How did increasing

16 Jun 2022

Then, in Chapter 3, we estimate the effect of the increase in the state pension age from 65 to 66 The Institute for Fiscal Studies, June 2022 8 How did increasing the state pension age from 65 to 66 affect household incomes? on individual incomes, both in terms of the effect on the average level of income of 65-year-olds and in terms of the sources of income that individuals have. [...] As the increase in the state pension age means that 65-year-olds are now under the state pension age, this is the same as the effect of increasing the state pension age. [...] This is a result of: increases in the real value of the state pension due to the ‘triple lock’ introduced in 2010;3 other reforms to the state pension system in 2010 and 2016 that increased the generosity of the system for many reaching 3 The triple lock is a government commitment to increase the value of the state pension each tax year by the higher of average wage growth, inflation or 2.5%. [...] The graph also shows the effect of the increase in the state pension age, with the average state pension income of 65-year-olds falling to just £29 per week in 2020 as fewer and fewer 65-year-olds were eligible to claim the state pension. [...] 4.3 Drivers of the large increase in poverty In this section, we attempt to examine more deeply the drivers of the substantial increase in poverty we found in Section 4.2, including why the rise that results from the increase in the state pension age from 65 to 66 is greater than that found for the earlier increase in the female state pension age.
Pages
35
Published in
United Kingdom