The new reforms in the pension laws aren’t doing women as well as they had hoped. The groups worst hit by the state pension reforms would be the women that have taken early retirement in order to take care of family members. This flies in the face of the earlier hopes by lawmakers to actually get these women more money, not less.
The state pension will be around 144 a week, flat rate. Some women actually will do better under the new rules than others, but it doesn’t look as good for people as they assumed in the beginning.
The women in question that are missing out will be born between 4/1952 and 7/1953. The trouble is that these women are going to reach the age for state pension well before the changes take effect. Men born between these dates will reach the age required after the change takes effect.
Tom McPhail, a pensions export from Hargreaves Lansdown, commented that there will be plenty of people that miss out because the old system is just too expensive to continue with. The Minister for Pensions, Steve Webb, is trying to balance all parties and feels as if things are moving in the right direction. He feels that the women affected will be better off in the long run since they will be able to draw their pension before a man who is the same age.
However, many women are outraged that the amounts just aren’t matching up.
Critics of the outrage say that it’s better to draw now, and if they don’t wish to do that they will need to work longer before retirement to get the state pension raised by the new legislation.
We think that if you can get away with not relying on the state pension, all to the better. Check out some of our other guides for ways that you can build the state pension. Good luck!