More Women Set to Get Full State Pension

Western Mail (Cardiff, Wales), October 29, 2011 | Go to article overview

More Women Set to Get Full State Pension


THE proportion of women set to receive the full basic state pension is set to nearly double in 20 years' time, according to the Office for National Statistics (ONS). Its latest Pension Trends report found that in September 2010 fewer than half (48%) of female pensioners received a full basic state pension (BSP), compared with 87% of male pensioners.

Many women in the current generation of pensioners failed to build up full or near-full BSP entitlement under a previous system in place before April 2010, mainly because of broken work histories and part-time work patterns, the ONS said.

However, following changes to the law, 95% of women reaching state pension age (SPA) in Britain in 2030/31 are expected to receive a full BSP.

The Pensions Act 2007 changed the rules on building up entitlements to the BSP, including cutting the number of years needed to qualify for the full pension.

The "purchasing power" of the BSP is also forecast to rise, the ONS said, following the Pensions Act which re-linked state pension increases to earnings. In 2010 the Government introduced the "triple lock" policy, guaranteeing that BSP will be increased each year by average earnings growth, inflation or 2.5%, whichever is higher.

Forecasts by the Department for Work and Pensions (DWP) suggest that by 2030 the purchasing power of the BSP would increase by almost half.

However, it is also suggested that 60% of the female baby boomers reaching state pension age between 2016 to 2020 will have entitlements of less than pounds 140 per week in 2011-12 earnings terms, the ONS said.

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