Government announces pension boost

24/10/2008

The government has announced a new relaxation of pension rules, which will allow many to save more towards their retirement.

Around half a million Britons are set to benefit from the move - which allows those who have not put enough by to qualify for a full state pension to save extra through one-off "top-up" payments.

Women in particular, especially those who have taken long periods off work in order to raise children, will be affected.

The changes are to be made in the upcoming Pensions Act.

Currently, just one in three females qualify for the full pension on retirement, the Press Association reports.

Work and pensions secretary James Purnell said: "The Pensions Act will transform pension provision and finally bring equality for women and carers so that by 2010 around 75 per cent of women reaching state pension age will be entitled to a full basic state pension, rising to 90 per cent by 2025 compared to around 35 per cent today."

Tags; Income Worries and Debt, Retirement Money Problems,

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