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Is this the end for derived pension benefits for spouses?

16th February, 2016 · Carl Brown · Leave a comment

Nearly 300,000 people are due to receive lower pensions in a move announced in December last year. The government plans to scrap the ‘derived benefit’ top-up for spouses worth up to around £66 per week, a benefit that disproportionately benefits women.

It’s the latest in a salvo of policies designed to reduce pensions spending at a time when every pound has to stretch further.

Derived benefit explained

The top-up is awarded to people who have failed to accrue the required 18 years of National Insurance contributions required to receive the state pension, but whose spouses have met the requirement. Approximately 3% of all pensioners receive the derived benefit top-up.

It was introduced in the National Insurance Act of 1946, under the dominant societal model of the male breadwinner. Women were extremely likely to reach state pension age without qualifying for their own pension, and so were awarded up to 60% of the full pension while their husband was alive, increasing to the full rate once widowed. Continue reading →

Carl Brown
Writer and editor at Moneyism.co.uk. I write about debt, saving, spending, investment and economics.
http://www.moneyism.co.uk
Posted in pensions, Personal finance, Politics, retirement, Saving | Tags: early retirement, investing for retirement, pensions, retirement, retirement age, retirement savings |

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  • About
  • What really makes us happy?
  • Should pension enrolment be compulsory?
  • Are things looking up for savers?
  • The recovery is here – will you be better off?
  • Is this the end for derived pension benefits for spouses?
  • Working while travelling the world
  • Government lifts cap on higher education places – do the numbers add up?
  • The perfect gift: a solid start in life
  • Women face a harder time in retirement
  • Make your money work for you