Pension Reforms To Make System Fairer Says Ritchie

The reforms to State Pensions, which will be introduced on April 6, are claimed to make the system fairer for both men and women, and in particular, those with caring responsibilities.

Social Development Minister Margaret Ritchie said: "Changes are being introduced to the State Pension ... 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."

From April, men and women reaching State 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, after the changes are made, 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.

In addition, 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 and 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."