|Date:||09 March 2018|
|Authors:||Jonathan Cribb and Carl Emmerson|
|Publisher:||Cambridge University Press|
|Published in:||Journal of Pension Economics and Finance , pp. 1-23|
|JEL classification:||H55, D31, I38|
We estimate the impact of increasing the female early retirement age (ERA) on household living standards. Examining the increase in the female ERA from 60 to 63 in the UK, we find increased earnings only partially offset lost public pension income, leaving affected women's household incomes £32 per week lower on average. The proportional effect was substantially larger for women in lower income households. This increased the income poverty rate among affected women by 6.4 percentage points. We find no evidence of an increased inability to afford important material items, potentially suggesting that material deprivation has been avoided through smoothing of consumption.