Today's announcement in the Daily Mail that women will be able to improve their state pensions is welcome - but is not quite what it seems.
The issue is that many women retire with incomplete records of National Insurance Contributions - often because of periods in low-paid part-time work or time caring for family. Under plans announced today, women will be able to 'buy back' an extra 6 years of missing NI contributions. However, there are several important restrictions on this:
- it will only apply to women who reach state pension age between 6th April this year and 5th April 2015;
- it will only apply to women who in any case have made 20 years of NI contributions;
- (I'm guessing here...) I very much doubt it will apply to years where women paid the 'married woman's stamp';
From the media coverage this morning you might have imagined that lots of retired women could now boost their pensions, but sadly this is not the case. The changes are estimated to benefit around half a million women who are close to state pension age (or who retired this year) but are of no help at all to the millions of retired women who draw poor pensions. My view is that the BBC have a duty to be a bit more careful in how they report these stories because a lot of people will be bitterly disappointed when they find out that this Government concession does not apply to them.
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3 comments:
I agree and I like how you took the time to go into detail on the pension change usually BBC does a good job at showing the outside perspective, but the limitations as you mentioned are that BBC should take more time and say everything that is occuring.
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