Social Justice Secretary Shirley-Anne Somerville said the State Pension Age Review, which must be published by 2029 at the latest, must take into account “Scotland’s demographic needs” as she called on her UK counterparts to focus on “reducing poverty and inequality”.
She added that “the Scottish Government does not want to see any changes that do not fundamentally consider Scotland’s unique challenges”.
In Scotland, the average life expectancy is 76.8 years for men and 80.8 years for women, according to the most recent statistics published by the National Records of Scotland last year.
This is lower than England (78.8 years for men and 82.8 years for women), as well as the overall UK average (78.6 years for men and 82.6 years for women).
Somerville made the comments while submitting evidence to the independent State Pension Age Review on Tuesday.
She said: “Here in Scotland, both men and women have a lower average life expectancy at the current state pension age of 66. Inequalities in life expectancy, including healthy life expectancy, within the population are significant in Scotland, and reducing poverty and inequality therefore remains the best way of improving life expectancy.
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“Nonetheless, it is important that current variations in life expectancy are highlighted in your review to ensure that any potential changes do not penalise those who have made similar contributions over the course of their lives.”
Somerville said pension inequalities mean that women, people with multiple low-pay jobs, disabled people, minority ethnic communities and people who are self-employed all face lower pension incomes in retirement.
In Scotland, it is estimated that around 160,000 people over pension age live in relative poverty, after housing costs are taken into account.
“We are doing everything within our powers to tackle poverty and inequality and to protect people in retirement, such as by providing pension age winter heating payments, which are estimated to benefit more than 880,000 eligible Scottish pensioners this winter,” Somerville said.
“But given these wider considerations, you will understand that the Scottish Government does not want to see any changes that do not fundamentally consider Scotland’s unique challenges.”
Somerville added that any review of the state pension age must “ensure justice” for Waspi (Women Against State Pension Inequality) women.
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The UK Government has so far refused to set up a compensation scheme for women born in the 1950s, whose state pension age was raised so it would be equal with men.
Somerville continued: “It is vital that this review ensures that any changes are communicated clearly and fairly, so that similar distress is not repeated.”
The State Pension Age Review is a statutory review under the Pensions Act 2014, which must be conducted every six years.
The current review was launched on July 21 and must be published by March 2029 at the latest.
The review covers Scotland and will look at what the timetable should be for rises in the state pension age in future decades.