Everyone agrees pensions reform should produce a system that's fair for everyone. But what is fair? And could the reforms unintentionally lead to some unfair outcomes?
These thoughts were prompted by case studies prepared for Scottish Widows by the Pensions Policy Institute (PPI). These found that a median-earning woman who contributed at the basic rate into a personal account from age 22 until retirement could receive only 69% as much pension as an equivalent male. Is that fair? The difference arises partly because women receive lower annuity rates than men because they live for longer on average. Their monthly pension income is lower, but on average they get it for longer. Is that fair? More significantly, median female earnings are much lower tha...
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