Overhauled pension rules to benefit hundreds of thousands of women
24 October 2008
More than half a million UK women could benefit from newly unveiled plans to allow them to top up their national insurance (NI) contributions, it has been revealed.
Currently, stay-at-home mothers could be missing out on a full state pension as they have not made the minimum amount of 39 years NI contribution but as of next April that figure will be reduced to 30 years.
Also, those who are falling short of the minimum payments will be able to buy an additional six years' contributions.
To get a full state pension men have to contribute for 44 years - with both men and women having to make donations for at least a quarter of their working lives for it to count at all.
This change will apply to any women who reaches the state pension age between April 6th this year and April 5th 2015, or if she has contributed for 20 years or more to her NI payments.
Ministers say that this will mean that by 2025 around 95 per cent of women of pension age will be entitled to a full state retirement fund.
A spokesperson for Age Concern said: "We are absolutely thrilled. The government should be congratulated for finally delivering a fairer deal for women and carers."
