Corby women set to lose out on state pension, warns TUC

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A new TUC report claims women in Corby will receive thousands of pounds less in state pension because of the widening gap between life expectancy in the town and the rising retirement age.

It says a woman in her late 40s from Corby can expect to receive £67,000 less state pension when she retires, compared with a women of the same age in East Dorset.

The report looks at life expectancy projections by gender, occupation and geographical area, and their effect on the amount of state pension people are set to receive.

The state pension age is due to rise to 66 between 2018 and 2020 and to 67 between 2026 and 2028.

TUC research shows that by 2028 a woman living in East Dorset, the area of the UK with the longest post-65 life expectancy, can expect to live nine years longer than a woman in Corby, which has the shortest life expectancy, when they retire.

This state pension divide works out at £67,000 over their lifetime.

The state pension divide for men living in East Dorset and Manchester, the area with the shortest male post-65 life expectancy, will be £53,000.

Midlands TUC regional secretary, Rob Johnston, said: “These figures show that ordinary working people in the Midlands will lose out as a result of the Government’s pension changes. Health inequalities mean that people in areas such as Corby will have to work longer to get less. And what’s more, current trends suggest that inequality is set to increase meaning this divide will widen into a chasm.

“Britain is already too divided between the haves and the have-nots. To secure a fair deal for the Midlands, and a fair deal for ordinary families then we need to put a commitment to narrowing inequalities firmly at the centre of the political debate”

TUC General Secretary Frances O’Grady said: “The government’s decision to accelerate the rise in the state pension age will mean millions of people having to work for longer in order to receive less in retirement.

“There is already a shocking divide in life expectancies across England, and if current trends continue that inequality will get worse in the coming decades. The government’s pension reforms will add to the problem, with people in richer areas receiving more from the state, while those in poorer areas receive less.

“It cannot be right that people living in a wealthy area can receive tens of thousands of pounds more in state pension than someone living in a less well off part of the country, particularly as richer people are likely to have earned more during the career and have a bigger private pension too.”

The TUC report also shows that millions of people will receive less state pension, despite having to work for a further two years, because their life expectancy is not keeping pace with the increasing state pension age.

People living in poorer areas such as Corby, Manchester, Salford and Hull will receive substantially less state pension over their lifetime.

A woman in her late 40s in Corby will have to work for two more years before retiring but will receive £12,000 less state pension during her retirement than those retiring in 2016.

A man of a similar age living in Manchester will receive £7,500 less during his retirement.