The UK“s `one size fits all“ pension is too simplistic, ignoring regional differences and life expectancyThe prosperous countryside of east Dorset is home to Britain“s longest living residents, with the average male at birth expected to survive 82.9 years. Maybe it won“t make too much difference to their financial futures that the government said this week that it would raise the state pension age to 68 sooner than planned. They will still be collecting their state pension for nearly 15 years after retiring, picking up around £124,000 assuming the new state pension stays at £159.95 a week. They are certainly getting good value from their national insurance payments when they were working. Along the way they will also enjoy a £3,000 winter fuel bonus and once they reach 75, as they nearly all will, the TV licence is free, saving £147 a year.Now compare that with the deal for someone born in Glasgow. It has Britain“s worst longevity figures, with the average male expected to live just 72.6 years. The new retirement age of 68 means our typical Glaswegian male will pick up a state pension for only four to five years, pocketing just £38,000 in total. That winter fuel payment, more needed in Glasgow than Dorset, will beĀ more like £800, while on average they cannot expect to ever get the free TV licence. Continue reading...
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