Women will have to wait until 2025 before they all have the same basic state pension entitlement as men claims a new report on women and pensions by the Department of Work and Pensions (DWP).
The report examines how the state and private pension systems affect women and compares that to men’s experiences, and takes this into account when looking at what woman can expect in the future.
Figures from the report clearly show the inequalities of income at retirement with just 30% of women at state pension age currently receiving the full basic State pension and, of those, only 24% of them are entitled to it on the basis of their own national insurance contributions.
The findings of the DWP suggest that inequalities in the workplace also have to be tackled if poverty for women in retirement is to be eliminated. At the moment 1.3 million women are the beneficiaries of Pension Credit which, according to the report, lifts them out of absolute poverty.
Other key findings of the report reveal that 2.2 million women are not accruing a basic State pension, through a combination of low earnings or not being in the workplace due to other commitments.
David Blunkett, former Secretary of State for Work and Pensions, commented on the report saying the analysis would bring into sharp focus the reality facing many women regarding their pension provision. He also claimed that important decisions on the future of pensions policy are about to be taken.
He added: “This analysis is not about pre-judging the Pensions Commission report, it is about laying the facts on the table. If there is one thing that must come from this process it is that this historical divide is ended. Fairer outcomes for women are central to the consensus we are building for a long-term solution to the pensions crisis.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7968 4558 or email [email protected].IFAonline
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