TUC Warning Over Future State Pensions
State pensions received over a lifetime vary by tens of thousands of pounds because of differing life expectancies and locations, according to a new report.
The study by the Trade Unions Congress (TUC) showed that women in their late forties living in East Dorset can expect to live nine years longer than a woman in Corby, Northamptonshire.
As a result, they will receive £67,000 more in state pension.
East Dorset has the longest life expectancy in the UK for both men and women.
It said women in Corby - the area with the lowest female life expectancy - will receive £12,000 less in state pension over their lifetime than women retiring there in 2016, despite working for two more years.
The state pension divide for men living in East Dorset and Manchester - the area with the shortest male post-65 life expectancy - is estimated to be £53,000.
A man in his late forties living in Manchester will receive £7,500 less during his retirement than those retiring in 2016, the report said.
The state pension age is due to rise to 66 by 2018 and to 67 by 2028, while the divide in life expectancies between different types of workers is also expected to grow.
The report said a female managerial worker in 2028 can expect to live 3.8 years longer than a female manual worker. Their male counterparts face a gap of 3.1 years.
As a result, the amount of state pension received by different occupations varied by up to £29,000 for women and £23,000 for men.
TUC general secretary Frances O'Grady said that the Government should abandon its plan to raise the state pension age and set up an independent commission to examine health inequalities and their impact on people's expected retirement incomes.
"It cannot be right that people living in a wealthy area can receive tens of thousands of pounds more in state pension than someone living in a less well off part of the country," Ms O'Grady said.
"Particularly as richer people are likely to have earned more during the career and have a bigger private pension too.
"The Government's decision to accelerate the rise in the state pension age will mean millions of people having to work for longer in order to receive less in retirement."
However, a Department for Work and Pensions spokesman said: "Life expectancy is rising across the whole of the UK and we need a sustainable state pension system.
"Future rises in the state pension age will be independently reviewed, taking in a range of relevant factors.
"These are expected to include variations in healthy life expectancy, variations between different socio-economic groups, regional variations, and wider economic considerations."
:: The lifetime state pension for men will fall from £147,000 in 2016 when the single-tier scheme is introduced, to an expected £146,000 in 2028.