Report on Women's Helpline Published
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.
