Pension News New Bill To Give More Women The Full State Pension 62

New bill to give more women the full state pension

17 January 2007
A new pensions’ bill could entitle 90 per cent of women to the full state pension. The bill – getting its second reading today – has been designed to re-establish the link with earnings and improve the state second pension, and would mean that by 2010 around 75% of women would receive the full pension, compared to 50% if the system is not reformed, and around 90% would be eligible by 2020.

If reforms go ahead, by the 2050s, someone who contributed for most of their life through working or caring would be entitled to around £135 a week from state pensions in retirement – instead of between £90 and £100 without reform.

“These radical proposals are set to dramatically alter the pensions landscape in the UK,” said John Hutton, Secretary of State for Work and Pensions. “This Bill would create a more generous, fairer state system that would become a bedrock, on which people can build up decent private provision. It would be of particular benefit to women and carers, who often lose out in the current system.”

“When you add to this our proposals for a system of personal accounts – which would ensure that, for the first time, millions of workers would have access to a quality private pension scheme with a guaranteed employer contribution – the future’s looking good for millions of savers.”

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Written by Editorial Team