Macro Analysis /
United Kingdom

GB : Strategy - Flexible retirement age increases income inequality

    Joachim Klement
    Joachim Klement

    Analyst - Strategy, Accounting, and Sustainability (SAS)

    30 March 2022
    Published byCGS-CIMB

    Many countries in Europe and North America have raised the retirement age in an effort to ensure government pensions are economically sustainable. The basic idea is sound: people can postpone retirement by a couple of years and in return receive higher payments from social security or other forms of government pension. On the other hand, people who need or want to retire early can do so but have to either wait for government pension payments to kick in at a later date or accept lower pension income.