Why Waspi women are still being stung over pensions
Fight goes on to address huge inequality
EVERYBODY feels hard done by when they realise how little they will get in State Pension, but women born in the 50s have more reason to feel aggrieved than most.
They have been caught out by the move to equalise the State Pension for men and women, forcing many to work up to six years more than they had expected.
Too many did not understand the danger until too late, and now face extreme poverty in old age. They are known as the Waspi women, named after the campaign Women Against State Pension Inequality, set up in 2015 to fight the change. So far, Government ministers have resisted their demands but these badly treated women aren’t giving up yet. Can they still win?
The great Waspi sting
The 1995 Pensions Act increased the State Pension age for women from 60 to 65, in line with men.
This was done in the name of gender equality and to cut State Pension costs as life expectancy continued to grow. From December 2018, it was upped to reach 66 by October 2020.
An estimated 3.8million women have been affected, but too many did not realise they would be stung until it was too late.
Waspi was set up by five women in 2015, calling for compensation and transitional payments, saying women weren’t given adequate warning.
They have crowdfunded £100,000 to cover legal challenges, while an online petition attracted more than 100,000 signatures and forced a Parliamentary debate, but to no avail.
During the 2019 election, the Labour Party pledged £58billion in compensation to Waspi women if it won, but Boris Johnson’s landslide in December put an end to that. Yet still the Waspi women won’t give up.
Moral victory
Last month they won a symbolic victory after the Parliamentary and Health Service Ombudsman ruled they should have been given more notice of State Pension age changes.
The ombudsman said they were the victims of “maladministration”, as the Department for Work and Pensions (DWP) should have written to alert them earlier.
It contacted them in April 2009, instead of December 2006.
The ombudsman does not have the power to refund lost pensions or pay damages, but it could recommend that the Government pays these women compensation.
Waspi chair Angela Madden says the ruling vindicated arguments that women should have been given more time to plan.
She called on the Government to compensate all women affected now, rather than make them wait for the ombudsman to investigate further, saying the DWP’s inaction has had “devastating and life-altering impacts on women across the country”.
Victims have been waiting years for compensation and the “vicious cycle of Government inaction” can’t be allowed to continue, Madden says.
A DWP spokesman said its actions had been backed by the High Court and Court of Appeal, while the Supreme Court refused the claimants permission to appeal.
Hilary Simpson, 67, chairwoman of the steering group of a second campaigning group called Waspi 2018, says DWP failings have turned retirement plans upside down.
“Women have had to struggle in jobs they were no longer fit to do, husbands can’t retire and plans for helping with grandchildren have gone out of the window,” she said.
Campaigners will hold a silent rally in St Peter’s Square in Manchester on October 4, during the Conservative Party Conference.
Hilary said: “You won’t miss us. We will be the ones with our faces covered by white masks to symbolise the anonymous women whose lives were turned upside down, and many who died before reaching their new State Pension age.”
She called on MPs from all political parties to find a fair and fast solution for women, who have suffered an injustice and deserve compensation. “We are not going away,” she added.
Pension gender gap widens
The State Pension age may have equalised for men and women but there is nothing equal about women’s retirement income.
The average man will get £183,936 more in total pension income over the course of their retirement than the average woman, a study has revealed.
Men can anticipate an annual retirement income of £20,712, with women set to get £14,964 in later life, the analysis found. This includes all workplace and personal retirement savings, as well as State Pension. The
research was compiled by the Centre for Economics and Business Research and equity release lender More2Life.
Dave Harris, chief executive of More2Life, says women need to work an additional 14.5 years to catch up.
The gender pensions gap is actually getting worse, having risen by £26,673 since last year, highlighting the impact of Covid-19.
Women are more likely to work in sectors hardest hit by Covid-19, including travel, leisure, retail and hospitality, and are therefore more likely to have been made redundant or be furloughed, More2Life says.
Many also have lower incomes because they work part-time due to family responsibilities.
Women actually save harder, contributing 9.4 per cent of their income into their pension, compared with men at 8.3 per cent. Yet men’s higher earnings mean they contribute £3184 a year on average, against £2340 for women.
Dave says the financial services industry and the Government need to encourage women to engage with long-term financial planning.
Hargreaves Lansdown personal finance analyst Sarah Coles says women are struggling to manage even before they reach retirement. “They worry more about paying the mortgage or rent, saving for retirement, building an emergency savings fund, and their mental health.”
Take action now
Stephen Lowe, director at the retirement specialist Just Group, offers tips for women looking to save: Find out where you stand. Start by requesting a State Pension forecast from government portal Gov.uk. Join your workplace pension scheme. This is the closest thing to free money you will get, because your employer is obliged to pay in too. Invest early, giving your money more time to grow. Use pensions tax relief. Each £100 of pension savings will cost a basic rate taxpayer £80, or £60 for a higherrate taxpayer. The money rolls up free of tax and you can draw 25 per cent as a tax-free lump sum. Keep track of all your pensions and use the Pension Tracing Service. Claim benefits during career breaks. Women who give up work to raise children or care for elderly parents may claim National Insurance credits towards their State Pension. Talk to your partner. If they pursued their career while you raised children, they should share their pension with you. Get free guidance from the Government-backed Pension Wise service.
The gender gap is actually getting worse, having risen by £26,673 since last year