The initial hike in the state pension age (SPA) for women improved public finances by £2.1bn as employment rates for both women and men increased, research from the Institute for Fiscal Studies (IFS) has found.
The gradual increase in the SPA for women - from 60 to 61 and completed in April last year - was part of the reform to increase the age to 65 by 2020. The changes were implemented by the Conservative government in 1995. Latest IFS research found employment rates during the change period for women aged 60 increased by about 7%, resulting in 27,000 more women in work than would have been previously. The increase also saw the men married to the affected women increase their employment rates by 4.2 percentage points resulting in 8,300 more men working than who would have otherwise. Due...
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