It is clear that there exists an imbalance of equality with the State Pension.
This suggestion will aim to eradicate the gender inequality inherent within the state pension retirement ages, and also provide the flexibility for people to retire on a state pension at a time of their choosing and not that of the governments.
Another advantage of this policy idea is that, as more people will have the opportunity to take retirement earlier, then presumably, an equal amount to jobs will become available in the jobs markets. This will also be of significant advantage to British business as those retiring have usually reached the top of their pay scales and will be replaced by people entering employment at the bottom, which could make significant savings for businesses, which in turn could be used to invest in workforce education.
The government pension scheme will operate in a similar way to Local Government Pension Schemes (LGPS) in that, if you are lucky enough to be able to afford to retire earlier, you will take a slightly reduced pension. This would enable those who have saved for retirement to be able to afford to retire earlier, and those that haven’t, may have to work longer, but once arriving at their chosen retirement age, will receive a larger weekly pension.
The scheme would apply to all people equally irrespective of gender.
Here are some numbers based on a life expectancy of 80 years of age and a maximum state pension of £120 per week. These figures are just for illustration.
If we base the pension on a weekly income of £120 per week for someone retiring at 65 and with a 15 year life expectancy, they would have a total pension pot of £93,600 based over a 15 year period. So their weekly pension would be £120pw.
However, someone retiring at 60 with a 20 year life expectancy would receive the same pension pot of £93,600, but their pension is based on being in receipt of it for 5 years longer, they would receive a weekly pension of £90pw. Over a 20 year period or average life expectancy, the pensions would achieve parity whilst giving people the flexibility to retire at a time of their choosing.
The calculations of pension are easily adjusted to compensate for changes in life expectancy and age of retirement. Pension can be calculated to be taken at any time throughout the year providing the opportunity to take retirement on any day of ones choosing between the ages of 60 and the day one chooses to retire.