Up to 370,000 women are being paid less state pension than they are owed because of government errors, according to Steve Webb of actuarial consultancy LCP. The problem affects women born before 1953, particularly widows, married or divorced women and those who are 80 or older. Many built up substantial pension entitlements through their husbands’ national insurance contributions, qualifying them for up to 60% of the basic state pension via this route alone. But the state pension system has changed regularly over the past 50 years with state record-keeping and calculations often failing to keep pace.
Webb’s research suggests many women are not even receiving the minimum state-pension entitlement, and may have no idea. In several cases LCP has obtained backdated pension payments worth thousands for those who were overlooked. The Department for Work and Pensions says it is now checking its own records and will pay compensation, though in some cases the victims will only be able to backdate claims for underpaid pension for a limited time. Webb is calling for a more wide-ranging investigation with full reimbursement guaranteed in every case. For now, LCP has an online calculator you can use to make a preliminary assessment of whether you may have been affected. See lcp.uk.com.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Which UK region has the most in savings? Average savings by areaThe amount people have in their savings differs from region to region in the UK. How does your nest egg compare to those living nearby?
-
Doug and Mary Perkins: Specsavers’ clear-sighted foundersHelped by the deregulation of the sector in the 1980s and brilliant advertising, Mary Perkins and her husband Doug have taken Specsavers to the top of the optometry market
-
What is the state pension triple lock?The UK state pension triple lock is loved by pensioners but hated by economists. But what is the triple lock – and what does its future hold?
-
How much state pension will I get?There are several things that determine how much state pension you'll get when you hit state pension age. Here's how to work out your entitlement
-
£500 million state pension underpayments identified - are you owed money?News The DWP has so far identified £500m in state pension underpayments between January 2021 to October 2023. We explain how to check if you’ve been affected and how to claim your money back.
-
State pension age could rise to 68 by 2040, says work and pension secretaryNews Decision on increasing the state pension age past 67 is delayed and will not be made by the current government
-
State pension top-up deadline extended again to April 2025Pensions Spending just over £907 to purchase NI credits could add £7,740 a year to your pension pot – and now the government has extended the deadline to buy back missing credits.
-
State pension age could rise to 68 as early as 2035 – what it means for youNews State pension age increases could be accelerated, with the change to 68 coming in as early as 2035, affecting those who are 54 and under today.
-
State pension errors: HMRC contacts thousands of women over missing paymentsNews HMRC has sent out 325,000 letters so far. The average underpayment is £5,400 - could you be affected?
-
Triple lock to stay: how will it affect your pension?Analysis Triple lock looks set to stay, but what it is and what does it mean for your retirement income?
