Pension rule change leaves thousands of ex-military spouses shortchanged
Thousands of former military spouses – mostly women – are missing out on valuable pension credits because they reached state pension age before the rules changed.
The new state pension was introduced in April 2016 and stopped the ability for people to claim a pension based on their spouse’s National Insurance contributions.
Recognising the impact on partners of people in the forces, who are often unable to work as they move frequent- ly, the government introduced credits for military spouses while abroad. But the opportunity to claim is only available to those reaching state pension age after 6 April, 2016.
Spouses can claim a full year’s NI credit for any year they were abroad since 1975, equivalent to an extra £230 a year in a pension, or £4,600 over the course of an average 20-year retirement. Those who reached the state pension age before April 2016 are instead entitled to a pension worth 60 per cent of their husband’s full basic state pension, currently £122.30 a week.
Steve Webb, the former pensions minister, said the changes had left some people shortchanged.