HUNDREDS of thousands of newly-retired women are being urged to check whether they’re entitled to an extra £129 a week as part of a “little-known” state pension boost.
This applies to women who paid a reduced rate of National Insurance contributions known as the “married woman’s stamp”.
It meant women could claim a partial state pension based on the National Insurance record of their husband.
But Royal London says these women could now be losing out financially after the introduction of the new state pension, which applies to those retiring after April 2016.
The new state pension is based on the individual’s own National Insurance contributions rather than their spouse.
This could mean some women will be getting less money if they were expecting to claim a pension based on their partner’s record.
Top tips to boost your pension pot
IF you're already thinking about your retirement, here are some tips from Aviva on how you can maximise your pension pot.
- Understand where you start: Before you consider your plans for tomorrow, you'll need to understand where you stand today. Look into your current pension savings and policy and research when you’ll be eligible for the state pension, and how much support you’ll receive.
- Take advantage of your workplace pension: All employers are legally required to provide a workplace pension. If you save, your employer will usually have to contribute too.
- Track down your pensions: If you've moved jobs a lot, this means you'll have several pension pots. It can be hard to keep track of them all, but the government offers a free pension tracing service to help you.
- Take advantage of online planning tools: Aviva and Royal London have tools that give you an idea of what your retirement income will be, based on how much you're saving.
- Find out if your workplace offers advice: Many employers offer sessions with financial advisers to help you plan for your future retirement.
The number of women who paid a reduced stamp rate peaked in the 1970s to around 4.4million.
Although only around 200 people are still paying National Insurance at the reduced rate, Royal London estimates hundreds of thousands of women could be entitled to extra cash if they paid the lower threshold at some point.
They could claim a basic state pension of £129.20 a week if they’re now divorced or widowed.
Or they might be able to get 60 per cent of the basic state pension, at £77.45 per week, if they’re married.
How can I check my retirement age?
IF your pension is something that is on your mind, then you might be wondering what age you can retire.
Firstly, use the government's tool to check your state pension age.
Next check retirement ages on workplace pension schemes – Aviva says this can massively impact your windfall once you enter your golden years.
For advice, you can contact The Pensions Advisory Service for free online or on 0800 011 3797.
Royal London is calling on women receiving less than these amounts to check if they paid the married woman’s stamp at any point in the 35 years up to retirement.
If they did, they should contact the Pension Service to see if they are entitled to a higher pension.
The Pension Service can be reached using the GOV.uk website or by calling 0800 731 0469.
To have qualified to pay the reduced rate of National Insurance, married women must have opted in to the scheme before it ended in the late 1970s.
Those who were already in the scheme were allowed to continue paying the reduced rate.
Steve Webb, director of policy at Royal London said: “It is not widely known that women who paid the reduced stamp at any point in the 35 years before they retired, and who come under the new state pension system, can claim a minimum payment under the new system.
“If any woman is getting a substantially reduced amount from the new state pension she should check if she paid the reduced stamp and contact the Pension Service if she is in any doubt.”
The Department of Work and Pensions confirmed it will update a person's pension amount if they're found to be entitled to a higher amount.
Here's how you can boost your state pension by up to £250 a year.
While Martin Lewis has issued an urgent pensions warning for millions of workers who could be missing out on £1,000s a year.
But on a more positive note, the state pension could rise by 4 per cent next year – giving the elderly £351 extra a year.
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