PENSION LITERACY AND SOCIAL INEQUALITY IN THE UNITED KINGDOM

Abstract

Population aging is threatening the financial long-term sustainability of pension systems. The UK government has reacted by bringing the state pension age for women in line with that of men, raising it from 60 to 65, over the 2010–2020 period. This will have differential implications for women's health and wellbeing depending on their awareness of the change and their level of pension literacy more generally. In this study we analyze questions from the English Longitudinal Study of Ageing (ELSA) dataset asking women whether they were aware of these changes and at what age they expect to receive their state pension. Preliminary results show socioeconomic differences in pension literacy according to education, income and occupation. Policy makers need to be aware of the effect on social and health inequalities the reforms might cause.