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01/03/2010
Pensions Review Reduces Qualifying Period
Pension reforms just announced are to make the overall system fairer.
That's according to NI Social Development Minister, Margaret Ritchie who said that the reforms to the system in Northern Ireland will also make it easier for more people to qualify for a full state pension as the number of years of work required to qualify for a full state pension is to drop.
From April 6 men and women will need just 30 years of national insurance contributions, said Minister Ritchie.
That compares with the current 44 years for men and 39 for women.
The state pension age for women will gradually rise from 60 to 65 between now and 2020.
The reforms - which will be introduced on 6 April - will make the system fairer for both men and women, and in particular, those with caring responsibilities, she insisted.
"Changes are being introduced to better reflect how we live and work today, including the fact that people will qualify for a full pension with fewer years on national insurance contributions. The changes will make sure that the State Pension is fairer, more accessible and more widely available."
Men and women reaching pension age will need just 30 years of National Insurance contributions to qualify for a full basic State Pension; this is in contrast to the 39 years for women and 44 years for men needed in the current system.
For example, at present, a man with 30 qualifying years, is entitled to 69% of the basic State Pension, receiving £65.72 per week.
However, on or after 6 April, a man reaching State Pension age with 30 qualifying years will be entitled to 100% of the basic State Pension, receiving £97.65 per week.
The State Pension age for women will gradually start to rise from 60 to 65 between 2010 and 2020, bringing it in line with that of men.
A new carers' credit will be introduced to help parents and carers build up qualifying years for State Pension whilst still undertaking their important caring responsibilities in the home.
Minister Ritchie added: "The pension reforms will benefit people across Northern Ireland. Three-quarters of women reaching State Pension age this year are expected to get a full basic State Pension, compared to around half without these changes. By 2025, this is expected to rise to over 90% of women.
"For the first time, it will be possible for a carer to build up a State Pension based entirely on credits, this is great news for many who contribute so much to society but who, until now, have not been recognised for their hard work," she said.
A direct mailing exercise has been ongoing, on a phased basis, to raise awareness amongst women directly affected by the equalisation changes.
This will continue until January 2012.
Also, from 2024, the pension age for both men and women will gradually rise from 65 to reach 68 by 2046.
These changes are being introduced in response to an ageing population in order to ensure the State Pension is sustainable for future generations.
In addition, the current Home Responsibilities Protection (HRP) scheme will be replaced by a new weekly carers' credit.
In the Irish Republic meanwhile, speculation is mounting that Ireland's retirement age will be increased this week as Social and Family Affairs Minister Mary Hanafin prepares to publish a pensions policy framework on Wednesday.
See: Retirement Age Could Increase
(BMcc/GK)
That's according to NI Social Development Minister, Margaret Ritchie who said that the reforms to the system in Northern Ireland will also make it easier for more people to qualify for a full state pension as the number of years of work required to qualify for a full state pension is to drop.
From April 6 men and women will need just 30 years of national insurance contributions, said Minister Ritchie.
That compares with the current 44 years for men and 39 for women.
The state pension age for women will gradually rise from 60 to 65 between now and 2020.
The reforms - which will be introduced on 6 April - will make the system fairer for both men and women, and in particular, those with caring responsibilities, she insisted.
"Changes are being introduced to better reflect how we live and work today, including the fact that people will qualify for a full pension with fewer years on national insurance contributions. The changes will make sure that the State Pension is fairer, more accessible and more widely available."
Men and women reaching pension age will need just 30 years of National Insurance contributions to qualify for a full basic State Pension; this is in contrast to the 39 years for women and 44 years for men needed in the current system.
For example, at present, a man with 30 qualifying years, is entitled to 69% of the basic State Pension, receiving £65.72 per week.
However, on or after 6 April, a man reaching State Pension age with 30 qualifying years will be entitled to 100% of the basic State Pension, receiving £97.65 per week.
The State Pension age for women will gradually start to rise from 60 to 65 between 2010 and 2020, bringing it in line with that of men.
A new carers' credit will be introduced to help parents and carers build up qualifying years for State Pension whilst still undertaking their important caring responsibilities in the home.
Minister Ritchie added: "The pension reforms will benefit people across Northern Ireland. Three-quarters of women reaching State Pension age this year are expected to get a full basic State Pension, compared to around half without these changes. By 2025, this is expected to rise to over 90% of women.
"For the first time, it will be possible for a carer to build up a State Pension based entirely on credits, this is great news for many who contribute so much to society but who, until now, have not been recognised for their hard work," she said.
A direct mailing exercise has been ongoing, on a phased basis, to raise awareness amongst women directly affected by the equalisation changes.
This will continue until January 2012.
Also, from 2024, the pension age for both men and women will gradually rise from 65 to reach 68 by 2046.
These changes are being introduced in response to an ageing population in order to ensure the State Pension is sustainable for future generations.
In addition, the current Home Responsibilities Protection (HRP) scheme will be replaced by a new weekly carers' credit.
In the Irish Republic meanwhile, speculation is mounting that Ireland's retirement age will be increased this week as Social and Family Affairs Minister Mary Hanafin prepares to publish a pensions policy framework on Wednesday.
See: Retirement Age Could Increase
(BMcc/GK)
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