Pensions

This is clearly an issue of great importance to many women - and the picture does not make for comforting reading.

When broadcaster Teresa Hunter spoke to the Women@Work network in Inverness on 1st February 2006 on the subject of Women and Pensions, over 75 women attended - one of the largest turnouts for any network topic. A similar floodgate of responses occurred when the Persions Advisory Service launched its helpline for women and pensions in 2008: over 1000 women responded in the first few days.

Women continue to have ‘woefully inadequate’ pension provision, often remaining financially dependent on husbands, or otherwise able to expect only a meagre income in retirement. As this topic is relevant to all women, W@W has decided to provide this summary of the main points and links to agencies that can offer practical help.

Pensions include 3 elements: the basic state pension, currently £87.30(flat rate) and SP2 (top up pension) based on what you earn, and private savings, through a personal pension or a company scheme, called an occupational pension.

The problem is that all these elements are based on National Insurance contributions made during working life and many women take career breaks to care for children or others. Furthermore, women are often in lower paid or part-time work, leaving many with smaller state pensions and less opportunity to accumulate a reasonable top-up pension from their employer.

The crucial thing is to find out exactly what kind of pension YOU can expect, by getting a pensions forecast, (see website below) to enable you to make some extra contributions, if necessary, to ensure maximum security of your basic state pension.

Finally, as the future looks at best uncertain and at worst bleak, for women’s pensions, we must press for change. Consider joining the Equal Opportunities Commission’s campaign for fair pensions for all. Make your voice heard.

Useful contacts and websites:

• The Financial Services Authority - for information, guidance and advice on all aspects of financial planning. The site includes types of pensions, how to choose a financial advisor, and what information you need to get the best service for your own situation.

• The Pension Service – for information on the all important State Pension, and how to get a forecast of your own individual State Pension entitlement, and how to top this up if necessary. Various guides are also available, and information about the pensions reform and the Pensions Act 2007.

• The Pensions Advisory Service – can help with individual problems. They have a section devoted to women & pensions, and initiated a helpline in 2008 on 0845 600 0806.

•  Age Concern works to improve life for older people, and provides informative fact sheets about pension issues. Check out Factsheet 19 – The State Pension and Factsheet 14 – Pension Credit Q&A.

• Government Report on Women and Pensions

• Equal Opportunities Commission – information on what women need to know about pensions AND about their campaign for equal pensions for women       

• Articles from the BBC website about the call for women-friendly pensions