§ Earl Russellasked Her Majesty's Government:
How many pensioners receive less than the full state pension because of defective contribution records; what are the main reasons for the defective contribution records; and whether they are considering ways of ameliorating the situation of these pensioners. [HL2533]
§ The Parliamentary Under-Secretary of State, Department of Social Security (Baroness Hollis of Heigham)Of those receiving basic state retirement pension, 3,251,080 men and 867,440 women receive full pension based on their own contribution records. In addition to this, 59,0401 men and 2,488,0201 women receive full pension based on their spouse's contribution records.
However, 247,7602 men and 3,024,8202 women receive less than full state retirement pension based on their own contribution records or their spouse's contribution records.
There are three main reasons why women often receive less than a full pension. Married women in work may have elected to pay contributions at a reduced rate on the understanding that they would not be entitled to a pension in their own right. Alternatively, they may have stayed at home to care for children, or decided not to work at all.
For men the main reason for receiving less will be that for significant periods of their working life they neither worked nor claimed benefits in the UK. Alternatively they may have been self-employed and their profits were too small for them to be liable for contributions.
One of the Government's ten fundamental challenges in pensions is the need to narrow the pensions gap between men and women so as to give women more security in retirement.
Notes:
1 Includes category B and category AB pensions.
2 Includes all categories of the basic state pension.
Source:
5 per cent. sample of the pensions strategy computer system, at September 1997.