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DWP analysis on women's pensions 'misleading'

By BFN News | 01:43 PM | Tuesday 12 March, 2013


New analysis by the Department for Work and Pensions on state pension entitlements for 430,000 women at or near 60 is misleading, according to a former Downing Street pensions adviser. Ros Altmann - an adviser during Tony Blair's premiership - said the analysis is interesting and suggests that many women will not lose out as much as they might fear. But she says it has some serious omissions and gives an impression that women will not be disadvantaged relative to men of the same age. Altmann says: "This is a little misleading. The analysis does not provide any breakdown for different groups. Taking a median of the whole range of all the 430,000 women affected has the effect of minimising the worst outcomes. "Clearly, those who have an extra 3 years of state pension are far better off than those with only an extra 15 months and any further delay in pension age would also mean more women losing out significantly further over their lifetime, since they would have even less than an extra 15 months of state pension before men of the same age start receiving their payments. "The DWP paper states that median state pension entitlement of the women born between April 1952 and July 1953 is £127pw. However, using a median does not capture the position of many women who are at the low end of the state pension scale. "These are the ones for whom the new system was designed to be an improvement, for whom the second state pension age delay was most problematic and who will lose out by far more than the £6pw median loss. "Those women who do not have additional state pension rights and have 35 years of contributions but are only entitled to the Basic State Pension, will be losing £1900 a year. "Having an extra year or two of state pension at the beginning of their retirement cannot make up for that kind of loss each year over 20 or more years." She concludes: "It seems ironic that a new state pension system, that was supposedly designed to help ensure women could receive better state pensions in their own right, has ended up penalising a particular group of women relative to men of the same age." Story provided by StockMarketWire.com

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