The Department for Work and Pensions has reiterated that the state pension system is going to be improved. Thanks to the reforms in the pensions bill, by the year 2010, three quarters of women would be entitled to a full basic state pension compared to 50per cent, if the system was not improved.
The link between earnings and contributions is to be re-established will mean that by the 2050s, someone who has contributed towards the state pension for most of their life would be entitled to around £135 per week as opposed to £90 to £100 without the improvements being made. These proposals will radically change the pensions landscape in the United Kingdom.
Our view
Try talking about these fantastic improvements to our female co-owner, Joanne Roberts. She started work at 16 and has paid full National Insurance since then. When she started work, the retirement age was 60. It will now change to 68 for her. That is an 8 year loss of state pensions payments at a saving of around £40,000 for Government! This is not a good deal for her.