Women 'unaware' of pension changes: Bill debate today

Around 20% of women aged 50 to 53 believe they will receive their state pension at 60, although their actual state pension age (SPA) is 65 and may be changed to 66.

The findings come as MPs prepare to debate the issue of women's SPAs this afternoon in Parliament during the second reading of the Pensions Bill.

The bill proposes raising the SPA to 66 by 2020 for both men and women, meaning some women born in 1954 will face up to an extra two years before they can claim their pensions.

One in five women are not even aware of the 1995 legislation which changed their SPA to 65 from 60, according to Age UK, and they have little understanding of today's proposals either.

However, Age UK's research also found 68% of women are concerned about the proposed SPA rise, with almost a quarter of them unable to work longer due to health problems and 15% relying on the state pension to support them whilst they care for others.

Age UK has called on the government to delay the SPA rise until after 2020, giving women more time to prepare for the change.

Ros Altmann, director general of Saga, has proposed an alternative to the current plans.

Altmann, pictured, said the current rate of increase for the SPA should be kept  until 2020, after which it should start to rise more quickly to 66 by 2021. She said this would give everyone ten years' notice of the change.

"We could then move to 66.5 more quickly than planned, by say 2024 or 2025," Altmann said.

"This would recognise longer life expectancy, give people fair notice, honour the coalition agreement and save even more money on pensions than the current plans would achieve."

Labour has campaigned to delay the SPA rise. It proposes equalizing the SPA at 66 in 2022 and has attracted 175 signatures to an early day motion (EDM) calling on the government to reconsider its plans.