23 Jun, 2016
Housewives to miss out on state pension
Tens of thousands of housewives are due to receive letters from the Government warning that they will not qualify for the new state pension because they have not worked for long enough, deVere Group reports.
The Department for Work and Pensions is sending more than 100,000 people within nine years of state pension age the letters, which will notify them that they will not receive anything under the new system.
Older women who took on traditional roles in the home, or took extended periods of time off work to raise children, are most likely to lose out as a result of the new rules.
Men born after 6 April 1951 and women born after 6 April 1953, who are eligible to receive the new state pension, must have worked full time for a minimum of 10 years to qualify for it.
Confusingly this was not the case for people retiring between 2010 and April 2016, who were able to receive an income based on just one year's work.
The Government agreed to send out the letters over concerns raised by the Work and Pensions Select Committee that large numbers of Britons reaching retirement age may not realise that they would not be able to rely on receiving a state pension in old age.
The new, "flat rate" state pension was launched in April as a simple alternative to the previous state pension which was made up for two parts, one of which was linked to people's salary. Those who have 35 or more years of full national insurance contributions will receive an income of £155.65 a week for life. People with contributions of between 10 and 35 years will receive a proportion of this total.
Earlier pension news - Brexit endangers UK state pensions