The state pension age has been changing in recent years and decades – with the Department for Work and Pensions (DWP) responsible for the changes that are set to come into place
The Department for Work and Pensions (DWP) is altering the state pension age for people born in specific years, a move that personal finance experts believe could be “positive” for health. A study by IFS directors James Banks, Jonathan Cribb, Carl Emmerson, and David Sturrock has revealed that the pension age increase will lead one in ten women to work longer.
Moreover, the research indicates that staying in employment can boost cognitive function among women in their early 60s. “We found that being in paid work is good for the cognitive functioning of women in their early 60s, on average,” the IFS economists stated.
The team observed that particularly those living alone, who might experience reduced social interaction upon retirement, benefit most from the mental engagement provided by work.
However, for the quarter of women in sedentary roles with minimal physical activity, continued work may exacerbate physical disabilities, the economists noted.
Summarising their findings, the IFS said: “These results mean that longer working has the potential to be positive for at least some health outcomes.
“However, the effects depend importantly on the type of work being undertaken and the activities and environment of people’s retirement.
“Policymakers should therefore consider encouraging social interaction and physical exercise in retirement. Our research suggests that this would have positive effects on maintaining cognitive function and physical mobility through older ages.”
In the UK, the State Pension age is currently set to increase from 66 to 67 beginning next year. By 2028, this change is expected to be fully implemented for both men and women, as per the legislation introduced in 2014, reports Birmingham Live.
A further increase to 68 is planned to take place between 2044 and 2046.
