The reality is that my generation’s working women were told from day one that if we paid our National Insurance we would receive a state pension at age 60. Yes there was a difference with men’s retirement age, but there were also huge differences in our pay and career expectations. State pensions are based on the number of years National Insurance payments one has made. That to my mind is a contract. We kept up our side; successive governments, of all three main political parties did not honour their side.
I was due to collect my state pension in 2014. When Gordon Brown’s moved the goalposts for some, I checked with the appropriate department. I was told I would not be affected.
Then in 2011 I checked again. I would now have to wait a further five years. Less than a year later I checked again; now I would have to wait six years.
If many of us had known that was going to be the case we might have made different choices during our most productive years.
If you have an expectation that if you play by the rules, contracts will be honoured please try to imagine how it feels when at the point you are slowing down, physically tired, maybe with health issues that mean no employer will insure you to do the work that you did, or you’re physically not able to do hard and heavy manual labour (this doesn’t just affect those sitting behind a desk in a warm office) then you’re told - when it’s too late in life for you to plan otherwise - that you will have to work a further six years. You will have to carry on paying National Insurance - whether you’ve got a contract (no hope of finding a staff job - or a contract for that matter - at your age) in order to qualify for the minimum state pension. I couldn’t stop paying my NI in 2014 - with a mere 44 years of NI contributions or I wouldn’t qualify for a full pension when (or if) I reached that always just out of reach finishing line. I have to pay till the day I reach it on my 66th birthday.
I could have done a lot with the £40,000 I would have received over those lost six years.
Many families have gone into debt because of that. Things like the 60+ Oystercard make all the difference for some lucky enough to have found a job in being able to get to it or not.