The white paper, which is the Government's first act in response to the recommendations of Lord Turners Pensions Commission, is expected to propose that they revamp the state pension system with higher contributions for women, and a restore a link to earnings.
The paper is expected to retain a contributory basis for the state pension, and restore the link to earnings, which was removed by the Conservatives in 1980. This is likely to come into force in 2012, rather than 2010 as suggested by Lord Turner. There will also be a phased increase in the state retirement age in line with life expectancy from 2020, reaching 68 in 2050 and the National Pension Savings Scheme from 2012.
Our view
At last some sense, a fair system where women have to pay the right amount for what they are to receive!
Why should men pay the same and receive less? (and Yes this is a female financial adviser writing this piece).