Women's pensions a 'national scandal'

Wednesday, 2 November 2005 12:00 AM

British women face a far poorer retirement than men, a government report finds today.

Over two million women are currently not building up entitlement for a state pension, figures from the Department for Work and Pensions (DWP) reveal, while others miss out through earning too little or spending time out of work looking after children and relatives.

Just 30 per cent of the women retiring today are entitled to a full state pension, with only 17 per cent receiving this based on their own contributions.

Along with a reduced likelihood of receiving the full state pension, fewer women than men are paying into private schemes.

"Childbirth, marriage, divorce and widowhood, all have significant impacts on pension accrual for many women," explained then pensions secretary David Blunkett and culture secretary Tessa Jowell in the foreward to the new report.

And this situation, according to campaign groups, requires action as soon as possible.

"The government has repeatedly admitted that women's pensions are a national scandal but has so far failed to act," said Gordon Lishman, director general of Age Concern.

"The current system is desperately unfair, rigid and inflexible for anyone with non-traditional working patterns."

He added: "We urgently need radical reform of the pensions system which puts the needs of women and carers at its heart. Unless the government acts quickly, future generations of women will be sentenced to a retirement in poverty."

The government-appointed pensions commission is due to recommend policies designed to close the inequality of the pensions gap later this month, and campaign groups are urging the government to address their concerns.

"Reform of pensions for women should be a top priority for the pensions commission and the government," said Helen McCarthy, head of pensions and savings development at the Association of British Insurers (ABI).

"We particularly want to see periods of time spent caring for children or elderly relatives treated as paid employment when calculating a state pension. In addition, we need other measures to encourage and enable women to save more for their own pension."

The TUC, however, is calling for compulsory pensions savings to remedy the situation. General secretary Brendan Barber commented: "Women will not get a fairer deal without big changes in state pensions and moves to compel employers to pay their share."

And the Lib Dems said that "patching up the national insurance system" was not the answer.

"We need the clarity of a citizen's pension based on residency to deliver universal state provision," work and pensions spokesman David Laws explained

The pensions commission is set to report on November 30th.

Tags: