Money
Pensions
State pensions - some wives can cash in
Pensions Minister Mike O'Brien has admitted that tens of thousands of married women may be able to get more state pension, writes Paul Lewis
Two groups are affected. First, women who stayed at home to look after their children or, in a few cases, a dependent adult.
For each whole tax year at home they should have got a boost through Home Responsibilities Protection (HRP). But the records were not properly kept and mistakes have been made in what the Minister called "a significant number" of cases. He has ordered an expensive exercise to track these women down.
Meanwhile, if you received child benefit or cared for an adult from April 1978 (time spent caring before that does not count) contact the pension service to make sure you are getting the correct pension.
The second group the Minister is looking for comprises up to 73,000 married women born between April 6, 1938 and October 23, 2004 who have a gap in their National Insurance contribution record between 1996/97 and 2001/02. If their husband is less than five years older than they are, they may be able to get a backdated pension for the years he was not retired.
Another 200,000 or so women may not be getting the right pension due to the complexity of the rules that affect their contributions. Even Government officials get them wrong. There are now two leaflets that explain the rules clearly. Everyone who gets less than a full state pension should read them. Especially married women. So check your records – you may be owed money.
Download the leaflets from www.thepensionservice.gov.uk/resourcecentre/factsheets/home.asp or call the Pension Service on 0845 60 60 265.
* This article first appeared in the July 2008 edition of Saga Magazine. Paul Lewis' opinions are his own and for general information only. Always seek independent financial advice.
