Big Changes to State Pension from 6th April 2010

There will be some very important changes to the state pension system in the next week, especially for women.

New Qualifying conditions

The positive news is that both men and women will only need 30 qualifying years of national insurance payments to receive the full basic state pension of £97.65 a week.

For women, this is a reduction from its present level of 39 years to 30, and for men a similar change will apply – as at present men need 44 qualifying years to get the full pension but, from the 6th April, will only need 30 years.

Although the reduction is greater for men than it is for women, it is women who stand to gain most from the change, as through lifestyle and other factors presently a much lower percentage of women than men currently qualify for the full BSP in their own right.

A qualifying year is one in which you have paid or had credited to you sufficient NI contributions. If you have less than the full number of years required you will receive a corresponding proportion of the full pension.

State pension ages

Whilst many more women will qualify for a better state pension in the years ahead, the not so positive news is that they will have to wait longer for it.

Currently, women can claim their state pension from age 60 but between 2010 and 2020 their state pension age will increase to 65 to bring it in line with men's. This will be phased in gradually starting on 6 April 2010.

During this 10 year period, for women born between 6 April 1950 and 5 April 1955, their state pension age will be set at a date somewhere between their 60th and 65th birthdays depending on their date of birth.

In addition to this and for both men and women, between 2024 and 2026, between 2034 and 2036 and between 2044 and 2046 the state pension age will rise to 66, 67 and 68 respectively. Anyone, born after the 6th April 1959 will be effected by these changes and have to wait longer for their state pension.


Political changes?

It should be noted that the issue of longer term changes to the state pension age is now the subject of political debate, and a change of Government may well result in further changes.

At the most recent Conservative party conference proposals were made to raise the state pension age beyond 65 earlier than currently planned.

For men the increase from 65 to 66 would happen from 2016. For women the existing phased changes up to 65, between 2010 and 2020, would remain in place but the age would rise again to 66 from 2020.

You can check your own state pension age here and use the State Pension Age calculator.