Women hit hardest as State Pension Age rises
- National Pensioners Convention
- Sep 22
- 2 min read
Women in their late 50s who were out of work have been the hardest hit by the rise in the state pension age from 60 to 66, according to new research from the Institute for Fiscal Studies (IFS).
The report found that unemployed women in their 50s experienced far greater income losses than those still in paid work when the reforms were phased in between 2010 and 2020. On average, weekly incomes for unemployed women fell by £81, compared with a £42 drop for women who were working in their late 50s.
The study, funded by the IFS Retirement Saving Consortium, noted that these women were also more likely to have lower incomes, health problems, or disabilities.
Despite the sharp fall in income, researchers found no evidence of reduced spending on essentials such as food or energy. However, participation in social activities – including sports clubs, museum visits and theatre trips – fell by eight percentage points, dropping from 53% before the reforms.
Well-being also declined. The average life satisfaction score among affected women fell by 0.25 points on a 0-to-10 scale, with an even sharper decline (0.38 points) among those already out of work before reaching pension age.
The government’s ongoing third review of the pension age must consider how best to support those struggling.
Key findings from the report include:
Limited return to work: Few women who were unemployed in their late 50s re-entered the workforce in response to the higher state pension age. By contrast, those in work at that age were significantly more likely to delay retirement, with their employment rate at ages 60–64 rising by 16 percentage points.
Greater income losses for the unemployed: Average weekly incomes fell by £81 for women who were out of work in their late 50s, compared with a £42 drop for those still employed.
Spending patterns mostly unchanged: There was no evidence of reduced spending on essentials such as food and energy.
Reduced social participation: The likelihood of taking part in cultural or social activities fell by eight percentage points (from a pre-reform level of 53%).
Small but measurable well-being decline: Life satisfaction dropped by 0.25 points on average, and by 0.38 points among those already unemployed.
