30 July 2008
The Pensions Advisory Service (TPAS) has published a report on
the dedicated Women's Pensions Helpline it opened in February 2008.
Originally the helpline was intended to run for only a limited
period, but due to demand, it was subsequently decided to keep it
open on a permanent basis.
The report details the main issues that callers were concerned
about and the guidance that TPAS was able to provide. The greatest
area of concern was the state scheme with 57% of all calls about
the state pension. Lack of knowledge and understanding in this area
was apparent, both in relation to present arrangements, and the
important changes to women's state pension ages and the pension
qualifying conditions starting in 2010. A survey of 1,307 women
callers to the helpline produced ample evidence of the problems
involved.
The report's main conclusion is that there is a need for much
improved communication of the state pension scheme. Other
recommendations concern a proposed increased ability to pay
voluntary NI contributions, an integrated programme of information
and education about the need and benefits of saving for retirement
and an easement in the triviality rules affecting small
pensions.
Commenting on the report TPAS Chief Executive, Malcolm McLean
said "Our experience in running this helpline has confirmed many of
the things we already knew or at least suspected about women's
pensions. Because of life style and other factors, pensions for
women are much more complicated than those for men and the system -
especially the state pension - is not generally understood. It is
hugely important, therefore, that every effort is made to increase
women's understanding of their rights and what they might be able
to do to help themselves".
Notes for Editors
1. A copy of the report can de downloaded
here.
2. TPAS is an independent body supported by the Government which
exists to provide free information and guidance to the public on
pension matters generally.
3. TPAS provides a general national pensions helpline 0845 601
2923 which is open 9.00am to 5.00pm Monday to Friday. The dedicated
pensions helpline for women is contactable during the same hours on
0845 600 0806.
4. TPAS acts as an impartial mediator in pension disputes
involving occupational, personal and stakeholder pensions. It has
no statutory powers and does not provide investment advice.
5. TPAS provides a range of leaflets on different aspects of
pensions. Details can be found on our website www.pensionsadvisoryservice.org.uk which also
includes a web based Annuity Planner.
Executive Summary
- The helpline ran initially for 8 weeks during which it
received over 9000 calls.
- Such was the demand that we have decided to continue it
indefinitely.
- The report details the main issues that callers were concerned
about and some of the guidance we were able to provide.
- 95% of all callers were over age 45, indicating the almost
total lack of interest that younger women have in pensions.
- The greatest area of interest to callers was the state scheme
with 57% of all calls about state pensions.
- We found low levels of knowledge and understanding,
particularly with regard to the workings of and potential changes
to the state pension scheme.- Only 17% of callers were aware of
shortfalls in their National Insurance record.
- Only 2% believed that they had sufficient information on the
state pension scheme.
- More disturbing was the fact that only 4% of callers knew
where to go to get more information about their state pension.
- Only 14% were aware that the state pension age for women was
due to rise.
- Only 9% claimed that they understood how their basic state
pension entitlement was calculated.
- Only 6% were aware of the changes due in 2010 and the factors
involved in that calculation.
- A high proportion of callers, 47%, were keen to improve the
amount of their state pension by paying voluntary
contributions.
- We found that only 17% of working women who called the
helpline were actively saving for their retirement.
- 91% of callers believed that they were would not have enough
income for a financially comfortable retirement.
- The report calls for the Government to improve communication
of the state pension scheme by adopting similar standards to that
which they impose on non-state pension arrangements.
- The report calls for increased ability to pay voluntary
contributions to the state scheme.
- The report calls for an integrated programme of information
and education about the need and benefit of saving for
retirement.
- The report calls for an easement
in the triviality rules to allow those with pots too small for
buying an annuity, to be able to access their saving.
