PARENTS

Stay At Home Mums Will Not Lose Pension Rights

08/03/2011 13:13 | Updated 22 May 2015

pension rights for stay at home mothersIain Duncan Smith, the Work and Pensions Secretary is set to introduce a new flat rate pension hand-out of £140 a week in vast reforms to the old age pension system.

The new plans will also put a stop the present rules which mean women who take time out to raise a family lose out once reaching pensionable age because of their inadequate NI contributions.

Under the existing system, women can buy extra years of National Insurance at a cost of around £630 a year to supplement their pension contributions.They can also purchase a further six if they have already got 20 years of contributions behind them and are due to reach pensionable age by April, 2015.

The average basic state pension for women is just £70.26, compared with £83.74 for men. Women's average payment from the state second pension, or Serps, is just £15.50 a week, nearly half of what is paid to men.(£28.71).

It is not known when the new system is expected to be rolled out, although ministers are said to be keen to have it in place before the next election in 2015.

What do you think about this story?

Are you worried about what your pension will amount to when you retire?

Have you topped up your NI contributions with that in mind?

Or are you relying solely on your private pension arrangements?

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