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
-
Stop inheritance tax perk on pensions, says IFSThe government could raise billions of pounds in revenue by closing inheritance tax loopholes, such as on pensions and AIM shares. Is your pension at risk?
-
Revealed: Best buy-to-let property hotspots in the UKLooking for the best buy-to-let property locations in the UK? We reveal the top 10 postcodes with the strongest rental returns
-
Act now to bag NatWest-owned Ulster Bank's 5.2% easy access savings accountUlster Bank is offering savers the chance to earn 5.2% on their cash savings, but you need to act fast as easy access rates are falling. We have all the details
-
Moneybox raises market-leading cash ISA to 5%Savings and investing app MoneyBox has boosted the rate on its cash ISA again, hiking it from 4.75% to 5% making it one of top rates. We have all the details.
-
October NS&I Premium Bonds winners - check now to see what you wonNS&I Premium Bonds holders can check now to see if they have won a prize this month. We explain how to check your premium bonds
-
October’s NS&I Premium Bond winners revealed - have you scooped £1 million?Two lucky NS&I Premium Bond winners are now millionaires this October. Find out here you are one of them
-
The best packaged bank accountsAdvice Packaged bank accounts can offer great value with useful additional perks – but get it wrong and you could be out of pocket
-
Bank of Baroda closes doors to UK retail bankingAfter almost 70 years of operating in the UK, one of India’s largest bank is shutting up shop in the UK retail banking market. We explain everything you need to know if you have savings or a current account with Bank of Baroda
-
The best options to earn cashback on spendingFrom credit cards and current accounts to cashback websites, there are plenty of ways to earn cashback on the money you spend.
-
Should you retire abroad?Check the regulations governing pension savings carefully before you decide to retire abroad.
