The Pensions Policy Institute have said that Government proposals in the White Paper will make eligibility for the basic state pension widespread, but a quarter of people will still not qualify for the second state pension each year.
The research also shows that someone reaching state pension age in 2009 having completed 43 qualifying years will get a lower basic state pension than someone with 30 qualifying years reaching pension age in 2010, which is the earliest date for the reforms.
Our view
In simple terms, state pension eligibility will no longer be based upon you paying (or being liable to pay) national insurance for 44 years for men and 39 to 44 years for women to qualify for a full state pension but will be reduced to 30 qualifying years for all.
Credit for the Basic State Pension and State Second Pension will be now given to anyone who stays at home caring for a child under 12 years old and on a weekly rather than annual basis and not given for those who stay at home and are in receipt of child benefit (family allowance) when children are older as is the case now.
There will be winners and losers on the proposed changes, we suspect that it is non-working mothers who will lose out more and will be encouraged back to work.