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Pensions For Women - What You Need To Know! UK Pensions for women have been lower than men because the system unjustifiably penalised them for taking time off to take care of their children and families. At the time when the State Pension system was introduced in the late 1940s, most married women raised families and looked after their husbands in return for life long financial support. The State Pension system allowed them to depend on their husbands National Insurance contributions to claim their state pensions. However, the state scheme only recognises marriage and civil partnerships but not unmarried relationships. Today, the fabric of British society is very different from those when the system was introduced. There are over 2 million women cohabiting with their partners rather than getting married and about 40% of marriages end in divorce. These divorces, sadly, result in many women taking over family responsibilities and raising children without being supported by their spouses. They could no longer rely upon their husbands NI contributions for their retirement income and have to seek financial advice on their own retirement planning. It's important that pensions for women are adequate to ensure that they have sufficient retirement income to meet their needs when they retire. This is especially so given the fact that women tend to live longer than men. From 6th April 2010 to 5th April 2011 the basic state pension is £97.65 per week and the amount of state pension payable will depend on the number of qualifying years. If you are entitled to a state retirement pension before 6th April 2010, you're required to have 39 qualifying years (i.e contributed to the scheme for 39 years) to get the full basic pension of £97.65. The minimum payment is 25% of the full state pension and that will require you to have at least 10 qualifying years. If you have qualifying years between 10 years and 39 years, the payment would be pro-rated. If you are entitled to claim state pension on or after 6th April 2010, there is no longer a minimum requirement and the number of qualifying years required to receive the full basic state pension is reduced from 39 years to 30 years. If you have less than 30 qualifying years the payment will be pro-rated.
Claiming on your husband's NI record If you do not qualify for a full basic state pension on your own record when your reach the state pension age, you may be able to increase your retirement income by relying on your husband's NI contributions. The amount of basic state pension you receive will be restricted to 60% of his basic state pension. You are allowed to delay receiving your state pension when you reach the state pension age. If you opt for state pension deferral, you may be able to get a cash lump sum and a normal state retirement pension later on. If you choose not to have a cash lump sum then you will receive extra state retirement pension when you claim it. Pensions for women will also be affected by whether their husbands or partners have occupational pensions. Occupational pension schemes generally offer the same rights to unmarried partners as to wives, husbands and civil partners, provided the unmarried partner is dependent or co-dependent with the scheme member. This is important as it means qualifying for a survivor pension when the husband or partner who belongs to the pension scheme dies. This should boost the pensions for women who outlive their husbands. Changes in state pension age for women from 6th April 2010 will affect women born on or after 6th April 1950. Women born before 6th April 1950 are entitled to receive state pension when they reach the age of 60. The state pension age of those born on or after 6th April 1950 will be increased gradually to 65 for all women by 5th April 2020. Careful retirement planning will help to increase the pensions for women when they reach retirement age. It is advisable to seek financial advice on retirement planning early to ensure you have adequate retirement income to enjoy your retirement.
Retirement planning helps you get more out of life in retirement |
