2010 is the date when male and female State pensions will be brought into line and the retirement age for both will be set at 65. See our Female State Pension Age Calculator to check your retirement age.
State pension rights for same sex partners will also be introduced at that time and the benefits from State pensions will also be equalised for men and women. Same sex partners will be entitled to a joint State pension, as if they were a heterosexual married couple. Also, husbands will have a right to a basic State pension based on their wives contributions, if they have not paid enough National Insurance of their own. Husbands will also inherit part of their wives additional State Pension (State Earnings Related Pension and State Second Pension) on her death.
Finally, where a wife has reached State pension age and a husband has not, he will be entitled to the adult dependency addition. Until 2010 all of these additional benefits are only available to wives. Once this has been introduced, it will also be rolled out to same sex partners who have registered and been termed as registered partners.
It is also hoped that changes will be made to private and company pension schemes where same sex and common law partners will be treated as married in terms of the benefits available.
Our View
News of the changes is welcome and we don't know why it wasn't done sooner. By increasing the female State retirement age to 65, the Government has saved five years worth of payments for the majority of women. This will go someway to bolstering the State pension. Allowing husbands and wives the same rights on death and in other situations will mean that pensions are in payment for longer.
However, there will be less reliance on the State for other types of benefit, for example the Minimum Income Guarantee and Pension Credit. It must be worth it if the Government are going ahead.
Equal rights for common-law and same sex partners are also a welcome addition and will mean that many more couples benefit from increased financial stability, however small the amount.
Visit Our New State Pensions Centre in the Pensions Adviser.com -