State pension: blatant discrimination against women

EdInvestor

We're all used to the cunning little ways in which the system makes it hard for women to get a full state pension, but take a look at this well hidden regulation which affects payments for state pensioners' dependant husbands and wives: it really takes the biscuit.

2.2 Dependant wives

If you are a married woman under 60 when your husband starts to draw
his pension then he may be able to claim an additional £52.30 for you as
a dependant. But this won’t be paid if you earn more than £59.15 a
week (£52.30 if you don’t live with your husband) after the deduction of
certain expenses.
Any occupational or personal pension will be counted as ‘earnings’. If
you are receiving at least £52.30 from certain social security benefits this
may also mean that your husband does not get the addition. When you
reach 60, instead of your husband receiving the addition, you can claim
a pension based on your and/or your husband’s contributions.

So far so good, this extends the 60% state pension based on the husband's NI contributions to his wife below state pension age.The allowance then converts into a pension in her name when she reaches retirement age.

But just look at the rule covering retired women with dependant husbands who have not reached state pension age:

2.3 Dependant husbands


If you are a married man and your wife is receiving a state pension she
may be able to get an increase for you of up to £52.30. This won’t be
paid if you earn more than £59.15 a week (£52.30 if you don’t live with
your wife). But she can only get this increase if she was receiving
Incapacity Benefit with an addition for you immediately before she starts
to draw the State Pension. Your wife will not get an increase if you have
a State Pension or certain othber benefits of £52.30 or more.

Effectively this means that the vast majority of working women who have paid full NI contributions for their own pension won't be able to claim anything at all for their dependant husband.

http://www.ageconcern.org.uk/AgeConcern/Documents/FS19STATEPENSIONAPR07.pdf

Quite outrageous.:mad:

wacko911

Fair point, but I would be more worried at REAL inflation running at 12-14% and pension inflation is what 2 or 3%?

Take that over the next 10 years and the pension will be worth almost nothing.

Mind you I'm 28 and when I retire I will prob not see ANY state pension, but for the next 40+ years i'm expected to pay for the current pensioners AND save for my own retirement in a private pension.

sorted_2

Had to reply to you Wacko,911, what do you mean you are paying for current pensioners?
. I have paid in all my working life to get my state pension, as well as paying for a private pension, as did my parents before me.

crossleydd42

margaretclare wrote: »

No, you didn't. This is a common misconception.

During your working life you (and I, and all of us) were paying for the retirement pensions of those already retired. There is no 'savings pot' into which we all paid for those 40+ years in the hope and expectation that it was being invested somewhere against the time when we would need it. It was used at the time - as fast as we paid it in, it was being paid out, for retirement pensions, sickness and unemployment benefits.

Today's pensions are being paid for by today's workers. This doesn't apply to private pensions, though, where you DO pay in and someone invests it for you.

Margaret

Absolutely true, though few people realise it. This is why the system is creaking - on the State Pension aspect alone, folk are living longer

Sobraon

margaretclare I believe there is a NI fund see: http://www.publications.parliament.uk/pa/cm200607/cmhansrd/cm071025/text/71025w0031.htm
£35 Billion in March 2006.
(Probably invested now as a down payment on Northern Rock!)

Retired_I.F.A.

Quite outrageous.:mad:

So what do you do Ed?

Take it up with the European courts or burn your bra?


Just joking, I'm all for equality this is just one of a few remnants of the old school attitude. On issues far more important than money we all know women have the edge nowadays.

To quote Bob Geldoff

"This lot are more concerned with the rights of bloody foxes than they are of fathers."

EdInvestor

Retired_I.F.A. wrote: »

So what do you do Ed?
...this is just one of a few remnants of the old school attitude.

The next step should probably be to draw it to the attention of the powers that be as an anomoly which needs correcting. These things can get easily overlooked and it is one of those entitlements that is taxable, this usually helps. .

noh

EdInvestor wrote: »

The next step should probably be to draw it to the attention of the powers that be as an anomoly which needs correcting. These things can get easily overlooked and it is one of those entitlements that is taxable, this usually helps. .

The "powers that be" have already acted to correct the anomaly.

Extract from The Pensions Act 2007:-


"Adult dependency increases will be abolished from 6
April 2010. However, all entitlements existing at 6 April 2010 will be
protected up to 2020."

So for those retiring after 6 April 2010, whether male or female, there will be no adult dependancy payment available.

This has been discussed in this thread:-

http://forums.moneysavingexpert.com/showthread.html?t=737075


Nigel

EdInvestor

noh wrote: »

However, all entitlements existing at 6 April 2010 will be
protected up to 2020."

So the anomaly goes on. :mad: