Margaret (not her real name) has been married for over 30 years. She worked part-time for many years but this work was low paid, and only during teaching terms, so she never built up her record of NI contributions.
During periods of unemployment Margaret did not claim benefits (and therefore credits which would have counted towards her NI record) because her husband was working. Margaret gave up work to look after her husband when he became chronically ill to help him remain working for as long as possible.
They felt they could manage without claiming carer’s benefits (which again would have protected her NI record), but when he did eventually have to give up work as his condition worsened they made sure that he claimed incapacity benefit, purely so that his NI contributions—and therefore, they thought, Margaret’s pension—would be protected.
Margaret’s husband will reach pension age under the present system, with a full contribution record, which they were always promised would also cover Margaret. However at 59 Margaret finds that the pension she had relied upon will no longer exist.
This blog was contributed by Hannah Pearce, Age UK’s joint Head of Public Affairs.
The big headline in today’s autumn statement was the Chancellor’s announcement to increase state pension age. George Osborne said that state pension age would be set following a general principle by which people could expect to spend a third of their adult life in retirement. He declared that state pension age needs to keep up with life expectancy. On current assumptions, this would mean an increase to 68 in the mid 2030’s and 69 by the mid 2040’s. This follows a number of increases to State Pension Age in the last three Pensions Acts, the most recent of which speeded up equalisation so that women’s State Pension Age will increase to 65 between April 2016 and November 2018 and then to 66 for both men and women between December 2018 and October 2020. The current bill going through parliament proposes an increase to 67 between 2026 and 2028.
We have two broad concerns with this pronouncement. Firstly life expectancy figures on their own do not tell the whole story. Whilst life expectancy at birth (in England) for men is 83 the life expectancy gap – the gap between the highest and lowest life expectancy estimates by local authority is almost 9 years. The picture looks even worse when you examine healthy life expectancy which is only 64. And the male healthy life expectancy gap by local authority is over 15 years with Richmond at one of the scale where it is just over 70 compared to Manchester where it is just 55. Continue reading
Posted in Autumn Statement, Government
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