Pensions for working women

The times they are a-changin'

And the pension system is no exception. The following new schemes are being introduced.

State Second Pension
The State Second Pension is intended for those paying national insurance contributions but earning under £9,500 a year, and those out of the workplace because of caring responsibilities. Full-time carers, and those looking after a child under five full-time will be counted into the scheme as though they earned £9,500.

Stakeholder Pensions
This Pension is aimed at those earning over £9,500 and under £18,000 a year. Stakeholder pensions will be provided by private pension companies who will have to offer a pension that has low charges and is flexible. There will be incentives for people who have a State Second Pension to move to a Stakeholder Pension.

Contributions from unearned income
In the past you could only pay into a pension from your earnings. Under the new system you will be able to pay in from other income, for example if you are not working, or working part-time because of caring responsibilities, your partner could make payments into your pension for you.

Unfortunately these changes will not help women who move between caring and low paid work and who are never able to save enough to take them above income support level.