Devoting time to talking about pensions, is the surest way to make most people’s eyes glaze over. But for women in particular it’s not something you can afford to leave to the future.

We are constantly being told that we can’t rely on the state when we retire. What we are not often told is that women never could. The whole basis of our pension system was men’s working lives, in which women were considered dependants, reliant on their husband’s income. What that has meant in practise is that women’s income in retirement is only 40 per cent of men’s. Scary, isn’t it?

For many of us the whole pensions system is so complicated we are put off thinking about it, let alone doing anything.

Basic State Pension
The Basic State Pension is based on the national insurance contributions you have made. Many women who took time off to care for children, or earned under the limit for national insurance contributions do not qualify for the full state pension. The Basic State Pension is linked to prices, and is now worth just over £65 a week.

SERPS
The State Earnings Related Pension Scheme is the Government’s second pensions scheme. Because it is earnings related, the amount you get out at the end depends on the amount you pay in. If you earn enough, pay employee’s National Insurance Contributions and haven’t opted out then you are automatically part of SERPS.

Occupational and Personal Pensions
Sixty per cent of women do not have any form of occupational or personal pension. Occupational pensions are provided by your employer. Both you and your employer may make contributions. Personal pensions are arranged by you with a bank, building society or other financial institution.

Income support and the Minimum Income Guarantee
The Government has introduced the Minimum Income Guarantee, the amount below which a pensioner’s income should not fall. This is achieved by topping up the basic state pension with income support. Income support is means tested, so is reduced to take into account any income or savings you have over a certain amount.