Sarah Smith points out that the rich live longer than the poor. Life expectancy at 65 is another 17.5 years for social class I, but only 13.4 for social class V. Raising the retirement age therefore reduces the value of a pension more for the poor than for the rich.
And uprating the pension in line with earnings rather than prices benefits the rich more, as their greater longevity means that they gain more from the power of compounding (assuming earnings rise faster than prices).
Just so that nobody confuses me with someone who gives a shit, my answer to this is: yeah. And. So. What?
Who cares is raising the retirement age "reduces the value of a pension more for the poor than for the rich", as long as that person has enough to live on. That is what a pension is supposed to be, isn't it? An income to live off, not a lump sum that all should be able to spend as they like.
Besides, the rich—by definition—pay more into their pensions than the poor anyway (in terms of hard cash, not as a proportion of income). And the raising of the retirement age will allow the poor that many more years (and it is the last few years of pension fund accrual that really makes the difference) to pay for a reasonable pension income. Seems fair to me.
What' s more, she says, raising the retirement age might not save much money. This is because many people stop working before retirement age because of ill-health. Increasing the retirement age therefore merely means people will claim incapacity benefit for longer.
Well, it is certainly true that a staggeringly high proportion of public sector workers—and we are including civil service paper-pushers here—do retire long before the compulsory retirement age, but then that is because they get a ludicrously good deal which, whilst funded by the private sector, is unavailable to those in the wealth-creation sector.
One notices that the retirement age for public sector workers is not going to rise about 65, and they will still get their ludicrously generous (and utterly unfunded) pension schemes, courtesy of the rest of us. What a bunch of cunts.