A new report from the Institute for Fiscal Studies (IFS) suggests that raising the state pension age has the “potential to be positive” in improving workers’ health.
The research examined the effects of extended working lives resulting from increases to the state pension age from the Department for Work and Pensions (DWP).
The state pension age is set to rise again from 66 to 67 starting in April 2026, continuing the government’s policy of increasing the age at which people can first claim the retirement benefit.
These increases have been implemented by successive governments to manage growing pension spending as the population ages, with one consequence being that some people work longer.
State pension age increase “potential to be positive” for workers’ health
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The research specifically focused on women affected by the increases in female state pension age during the 2010s. Before 2010, all women had a state pension age of 60, which gradually increased to 65 between 2010 and 2018.
IFS directors James Banks, Jonathan Cribb, Carl Emmerson and David Sturrock conducted the study, which was published in the scientific journal Labour Economics.
Their analysis found that approximately one in ten women affected by the pension age rise responded by remaining in paid work for longer.
This extended employment period provided researchers with an opportunity to examine the health impacts of working into later life.
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The DWP is responsible for administering the state pension
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The research found that paid work has positive effects on cognitive functioning for women in their early 60s. This was measured through performance on tests including memory assessments.
“We found that being in paid work is good for the cognitive functioning of women in their early 60s, on average,” the IFS economists reported.
These benefits were observed across various job types, from managerial to routine work, suggesting cognitive benefits aren’t limited to traditionally mentally demanding roles.
Single women experienced the most significant improvements in cognitive functioning. The researchers noted: “This suggests that it is those who live alone, who are more likely to see a drop in social interactions upon retirement, who gained the most from the stimulation of work.”
The study also revealed that continued employment helps prevent the onset of physical disability for women in their early 60s.
Researchers measured this through questions about ability to perform daily tasks and through walking speed tests.
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The state pension age is rising
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However, the health benefits varied significantly depending on job type. For women in roles involving physical activity, work had a positive effect on physical health.
“For the quarter of women working in sedentary jobs that did not involve a lot of movement, working worsened physical disability,” the economists reported.
The research found that sedentary jobs caused women to do less physical exercise, while those in more active roles increased their exercise levels, “promoting increased levels of activity and therefore physical health:.
In summation, the IFS stated: “These results mean that longer working has the potential to be positive for at least some health outcomes. However, the effects depend importantly on the type of work being undertaken and the activities and environment of people’s retirement.
“Policymakers should therefore consider encouraging social interaction and physical exercise in retirement. Our research suggests that this would have positive effects on maintaining cognitive function and physical mobility through older ages.”
