When people come to retire, most hope for a time of financial security - a time when they can kick back and enjoy the fruits of their labours.
But it doesn't always happen that way.
There has been a lot of talk recently about the "pensions crisis". In some respects, this crisis has arisen for a good reason, namely, people are living longer and have the chance to enjoy their retirement years for longer.
This has inevitably thrown up some problems the Government is attempting to address in its pensions White Paper and I'd have to say it does go some way towards resolving the crisis we find ourselves in.
I welcome much of what is contained in it.
For instance, this is the first time that the dire situation many women pensioners find themselves in, has been addressed.
Because many women spend part of their working lives caring for children and elderly parents, they find they don't pay enough National Insurance credits to qualify for a full state pension. The Government is proposing that the number of years it takes for people to qualify for a full basic state pension should be cut to 30, as opposed to 44 or 49 at the moment. There are also plans to ensure those caring for children or the dsiabled should be able to build up pension entitlement without having to make a minimum level of National Insurance contributions.
This will undoubtedly help many women - the changes should mean 70% of women will be eligible for a full basic state pension by 2010. Only 30% are eligible at present.
I was also pleased to see further progress on the plight of the ASW pensioners in the White Paper. As a result the Government set up the Pension Protection Fund which will protect future pensioners from the same fate.
Much is being done and work still needs to be done.
Let's hope the time will come when, as regards pensions, we can say, "Crisis? What crisis?" |
